The party has called for Prime Minister Narendra Modi’s accountability as the head of the appointments committee of the cabinet
AMN / NEW DELHI
The Congress party today accused SEBI Chairperson Madhabi Puri Buch of holding the Office of Profit at ICICI Bank and continuing to receive income from the bank to this date.
Congress spokesperson Pawan Khera told media persons that it’s a serious case of “illegality” and conflict of interest on the part of the SEBI Chairperson.
She was a Whole Time Member of SEBI from April 5, 2017, to October 4, 2021, and became Chairperson of SEBI on March 2, 2022.
“Since the current SEBI Chairperson took office in 2017, she has not only been drawing a salary from SEBI but has also been holding an Office of Profit at ICICI Bank, continuing to receive income from them to this very day. Between 2017-2021, as a Whole Time member of SEBI, the current SEBI Chairperson received a salary from ICICI Bank amounting to ₹12,63,47,239 (₹12.63 crore) This is in violation of Section 54 of the SEBI (Employees’ Service) Regulations, 2001, and Section 5 of SEBI’s Code on Conflict of Interests for Board Members (2008), both of which prohibit whole time employees of SEBI from taking benefit from any other organisation and engaging in activities that entail in receiving a salary or fee,” said a statement released by the All India Congress Committee following Khera’s press conference.
“Between 2017-2024, as a Whole Time member and later as the SEBI Chairperson, she also received income from ICICI prudential amounting to ₹22,41,169 (₹22.41 lakh) This is again in violation of Section 54 of the SEBI (Employees’ Service) Regulations, 2001, Section 5 of SEBI’s Code on Conflict of Interests for Board Members (2008),” added the AICC statement.
Pawan Khera said that the SEBI Chairperson also received ESOPs from the ICICI Bank amounting to ₹2.84 crore, which is a violation of Section X of the ICICI Employees Stock Option Scheme 2000. “Between 2021-2023, the current SEBI Chairperson was also in receipt of TDS on the ESOP that was paid by ICICI Bank amounting to ₹1,10,20,817 (₹1.10 crore). The said TDS amount is chargeable under salary and is again in violation of the SEBI Code of Conduct. This is a case of escapement of income tax, as the benefit of TDS on ESOP paid by ICICI Bank is a prerequisite and again is liable for tax. This tax escape is ~ ₹50 lakh,” he said.
“In summary, the total amount received by the SEBI Chairperson from ICICI from her time of joining SEBI in 2017 up until today totals ₹16,80,22,143, which is shockingly 5.09 times the income she received from SEBI during the same period, which amounts to ₹3,30,28,246,” said the AICC statement.
As a quid pro quo, alleged Khera, the SEBI Chief soft-peddled norms for the ICICI Bank, which was facing adjudication proceedings on several probes against them.
He also said that ICICI needs to come up with an explanation on serious charges regarding why it was paying Buch even after she had become SEBI Chairperson.
Khera asked Buch to make public which other companies she has a similar arrangement with, like that of ICICI. As a political party, we want to know since it’s a question of people’s money, and if she fails to reveal, than the Congress would do that, warned the Congress leader.
He said this is the first of the several press conferences Congress will hold in future to fix accountability.
He asked PM Modi to come clean on why the government is protecting Buch despite several allegations of impropriety and illegality, starting from the report by the US short seller Hindenburg, which questioned Buch for not conducting a thorough investigation into the Adani group due to a conflict of interest. Buch was accused of investing in a complex web of funds Adani allegedly used for money laundering.
“Who appoints the Chairperson of SEBI? It is the Appointments Committee of the Cabinet, which includes the Prime Minister and Union Home Minister Amit Shah. There are two members in this committee responsible for appointing the Chairperson of SEBI,” he said, questioning the silence of the NDA top brass.
