Sebi chairperson Madhabi Buch, and husband Dhaval Buch have issued a statement in their personal capacity on September 13, regarding Agora Advisory, clarifying that she has never dealt with any file involving the consultancy firm, or any of the business groups named in recent allegations, after joining SEBI.
Role in Agora Advisory
"In keeping with the highest standards of governance, Madhabi has never dealt with any file involving Agora Advisory, Agora Partners, the Mahindra Group, Pidilite, Dr Reddy’s, Alvarez and Marsal, Sembcorp, Visu Leasing or ICICI Bank at any stage after her joining SEBI. As evident from the above facts and the communications from the companies, the allegations are completely false, malicious and defamatory," said the statement issued by Madhabi and Dhaval Buch.
In their statement, Madhabi and Dhaval Buch also referred to official communication from the companies that were named in the allegations, and who had issued clarifications soon after the Congress party's charges emerged, earlier this week.
The statement also clarified that ICICI Bank's payment to Agora were interest payments on deposits. "Ascribing motive to it is unfortunate and defamatory."
Dhaval Buch's Appointments
Madhabi's statement said an assumption was made regarding the appointment of the spouse of a senior government official, referring to allegations over Dhaval Buch's assignments. "He has his own strong reputation as a leading professional in his field," she added. Dhaval started working for the Mahindra & Mahindra in 2019 based on his merits and experience, much prior to Madhabi's appointment as Chairperson of SEBI, she clarified.
Questions over motivations behind the business decisions of the companies is 'unfortunate and defamatory' not just for Dhaval, but also for the companies named in the allegations, the statement said.
Dhaval’s consulting assignments were conducted in a structure so as to 'transparently isolate' the income so generated, said the statement. Accruals and expenses related to these assignments were separate from his personal income and expenses. "It is unfortunate that a process that actually facilitates greater transparency is being sought to be projected as suspicious," said the statement.
Matters Relating to ICICI Bank
Clarifying on Madhabi's Employee Stock Options (ESOPs) from ICICI Bank, the statement said she was allowed to exercise vested options for up to 10 years, as per rule.
With respect to the uneven pension amounts with gaps in between, Madhabi Buch said they were part of a contributory Annuity Scheme from ICICI Prudential, and the uneven amounts related to exercise of ESOPs at various stages over the ten years.
With respect to payment of TDS by ICICI Bank, Madhabi clarified that when an employee or ex-employee exercises their options, the company collects required Perquisite Tax (for TDS) from the individual upfront and pays the same to the tax authorities. So, Madhabi paid her own Perquisite Tax, upfront.
Regarding the allegations of moonlighting while employed with ICICI Bank, the statement denies that Madhabi engaged in any unauthorized external employment while with the bank.
"In 2011, she was granted long leave (unpaid) by the Bank to join her husband who was working in Singapore at that point of time. During her time there, in Singapore, with ICICI Bank's full and prior approval, she took up a position with a Private Equity Firm in Singapore. When it became clear in 2013 that she would remain in Singapore, she superannuated from ICICI Bank as per the Bank’s rules," the statement said.
Tax Returns 'Twisted'
'The allegations are completely false, malicious and defamatory,' said the statement, adding that Madhabi's tax returns were 'twisted deliberately' in order to create a false narrative.
Madhabi Buch's statement goes on to say that her I-T returns were obtained by 'fraudulent means' and were in violation of Income Tax Act. "Our income tax returns clearly have been obtained by adopting fraudulent means and illegally. This is a clear breach of not only our right to privacy (which is a fundamental right) but also a violation of the Income Tax Act," the statement said.
Madhabi's statement also points out that the allegations were 'malicious and motivated', and based on Income Tax Returns filed by the couple, which itself implies disclosures were made. "All these matters are a part of our income tax returns in which all these matters have been fully disclosed and taxes have been duly paid."
Allegations In Tranches
The statement highlights that the allegations were being made in parts, only to 'malign reputation and distort facts'. Madhabi and Dhaval said they do not ruling out the possibility of further allegations being made in the future.
The couple added they are confident they would be able to 'demolish' the charges even in the future, and reserve the right to take 'appropriate legal remedy' as they may be advised.
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