Don’t Extend Tenure of ICICI Bank MD&CEO, Prashant Bhushan requests RBI; Full Controversy Explained!

A Senior Advocate, Mr. Prashant Bhushan has written a letter to the Reserve Bank of India (RBI) to reconsider the extension of tenure of ICICI MD&CEO Mr. Sandeep Bakhshi. The tenure of Mr. Sandeep Bakhshi is set to expire soon, and ICICI Bank plans to extend his tenure. But why does Prashant Bhushan not want RBI to extend his tenure? The reason is – He has levelled serious allegations against Sandeep Bakhshi, which should be properly investigated.

The allegations are so serious that the RBI and the Government should conduct a transparent and impartial inquiry into the complaint made by Prashant Bhushan.

Allegation No.1

Prashan Bhushan said that the RBI imposed several penalties on ICICI Bank during the tenure of Sandeep Bakhshi. The list of penalties are given below:

This shows that during his tenure, the Bank had a habit of non-compliance, and repeated violations should not be overlooked. This also shows failure of internal controls, risk management, and supervisory oversight.

Allegation No.2

Prashant Bhushan said that several financial frauds have been reported during the tenure of Sandeep Bakhshi. The list is as follows:

Such a huge number of frauds shows the failure of the bank in saving the money of depositors. Such frauds demonstrate failure of the duties of selection, instruction, monitoring, and supervision.

Allegation No.3

Labour authorities have found serious problems in the bank’s functioning, highlighting unfair labour practices and violations of the Industrial Disputes Act, 1947. The Labour Ministry noted that the bank failed to provide proper documents to justify its disciplinary actions and did not submit the required records despite repeated directions.

It also could not explain its decisions even under its own Code of Conduct (2025). Authorities observed that the bank did not follow principles of natural justice, did not conduct proper disciplinary inquiries, and carried out large-scale and arbitrary terminations. Around 800 employees were marked as “absconding” within just five months, raising serious doubts.

As a result, action was initiated under Section 25-U for unfair labour practices, along with violations of Section 33 and issuance of show cause notices. The Chief Labour Commissioner (Central) also reported that the CEO did not attend a scheduled meeting, employees were unfairly transferred and harassed, and many were forced to leave their jobs without proper process.

Several complaints of illegal termination were received from across the country, and some employees even approached the National Human Rights Commission. Overall, authorities concluded that the bank’s actions were illegal, inhuman, and unfair, showing a clear failure to follow labour laws and proper employment practices.

Allegation No.4

There are reports that ICICI Bank has carried out mass terminations, with around 780–800 employees removed from their jobs. This has raised serious concerns about large-scale and arbitrary job cuts. Reports and findings from labour authorities suggest that these were not isolated cases but part of a pattern of unfair and coercive employment practices.

The situation is more serious because some reports claim that employees took extreme steps like suicide due to continuous workplace pressure, harassment, arbitrary transfers, and poor working conditions. It is also alleged that the Work Improvement Plan (WIP) was misused—not to improve performance, but to deny promotions, stop increments, create mental pressure, and force employees to resign.

Many employees were transferred to distant locations without consent and then suddenly placed under WIP without clear reasons. Those who complained were labelled as “insubordinate,” showing retaliation and suppression of voices. The WIP process also lacked transparency, proper communication, and record-keeping, which goes against basic fairness.

Despite wide media coverage and public concern, there is no evidence that the Managing Director took any action or ordered an inquiry. This lack of response points to poor management oversight and raises concerns about the impact on employees, public interest, and corporate governance.

Allegation No.5

It is further stated that the pattern of non-compliance is not limited to banking rules but also includes GST laws. ICICI Bank has failed to properly follow GST requirements, leading to heavy tax demands, penalties, and interest from different authorities across the country. For example, a demand of ₹49.11 crore was raised in West Bengal on 15.09.2025, followed by another ₹16.03 crore demand on 30.12.2025.

Much higher demands were raised in Mumbai, including ₹237.90 crore on 17.12.2025 and ₹76.86 crore on 19.03.2026. Additional demands of ₹10.07 crore and ₹5.22 crore were also raised by Maharashtra GST authorities. Altogether, the total demand comes to around ₹1224 crore. The large amount, repeated cases, and different locations clearly show serious failures in tax compliance and internal audit systems.

These are not small or accidental mistakes but indicate deeper problems in management, governance, and supervision, suggesting that the bank has not followed proper financial and regulatory standards.

Appeal by Prashant Bhushan

With this, Prashant Bhushan has appealed to the RBI and the Government of India to look into this and reconsider the extension of tenure of Mr. Sandeep Bakhshi and MD&CEO of ICICI Bank. He has also requested RBI to conduct a comprehensive inquiry into these allegations to save the money of depositors.

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Click here to download complaint filed by Prashant Bhushan against Sandeep Bakhshi

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