Vikrant Shekhawat : Sep 02, 2024, 10:20 PM
Madhabi Puri Buch: ICICI Bank on Monday responded to the salary and ESOP allegations leveled by the Congress on SEBI Chief Madhavi Puri Buch. The bank clarified that Buch was not paid any salary or ESOP after his retirement on October 31, 2013. The Congress had alleged that Buch had received Rs 16.8 crore from ICICI after becoming a SEBI member in 2017. The bank said that as per the rules for allocation of ESOP, Buch received only retirement benefits. Congress leader Jairam Ramesh has raised questions of conflict of interest on this.Nothing was given except retirement benefitsOn the allegations of Congress, the bank said, "ICICI Bank or its group companies have not given any salary or any ESOP (Employee Stock Option Plan) to Madhabi Puri Buch other than his retirement benefits after his retirement. It is worth noting that he had opted for retirement with effect from October 31, 2013.'' During her tenure at ICICI Group, Madhabi Puri Buch received remuneration in the form of salary, retirement benefits, bonus and ESOP in accordance with the bank's policies.What did the bank say in the statement regarding ESOPThe bank said, "As per our rules, ESOPs are available in the next few years from the date of allotment. Under the rules applicable at the time of allotment of ESOP to Buch, bank employees, including retired employees, had the option to exercise their ESOP anytime for a period of 10 years from the date of authorization.''Congress leader Jairam Ramesh had raised questionsCongress general secretary and media in-charge Jairam Ramesh said that serious questions have been raised about the conflict of interest on the SEBI chief in the matter of regulatory investigation being conducted on the violation of SEBI rules by the Adani Group. Ramesh said in a post on social media platform 'X', "It seems that the Government of India has easily sidelined these questions. Now this new disclosure of shocking illegal aspect has come to light." What are the income tax rules regarding ESOP? The bank's statement said that according to the income tax rules, the difference between the price of the stock on the day of ESOP allocation and its implementation is considered as perquisite income and is shown in Part B of Form 16 of retired employees. The bank is required to deduct perquisite tax on this income. Apart from this, Form-16 also includes payments made for retirement benefits of former employees.