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SEBI to pay Rs 7 lakh per month rent for chairman Tuhin Kanta Pandey

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Can You Believe? A public organization, SEBI, is paying ₹7 lakh per month as rent for its Chairman. Many people believe this amount is excessive and goes beyond the permitted allowances.

The Securities and Exchange Board of India (SEBI) has leased a luxury 5BHK apartment in south Mumbai’s Prabhadevi for its chairman, Tuhin Kanta Pandey, at a monthly rent of ₹7 lakh, according to real estate data platform Zapkey.com. The 3,000 sq. ft. sea-facing unit, located on the 51st floor of Rustomjee Crown, has been taken on a three-year lease signed on September 3. The apartment also comes with four car parks and required a security deposit of ₹42 lakh. The agreement includes a 5% annual rent escalation.

Rustomjee Crown, where Pandey’s apartment is located, is a premium development spread across 5.75 acres. It is among Mumbai’s most expensive residential complexes, with average property prices in Central Mumbai (Lower Parel, Prabhadevi, Worli) ranging between ₹32,671 and ₹35,730 per sq. ft., according to Knight Frank’s H1 FY25 report.

Rent is more than his Salary

The Government of India provides two options to SEBI Chairman – At the time of his appointment, SEBI Chairman Tuhin Kanta Pandey could either opt for a consolidated salary of ₹5.62 lakh per month (excluding house and car) or choose the government pay scale. He chose the second option. The government pay scale provided to SEBI Chairman is equivalent to the salary of a Government of India Secretary—around ₹2.25 lakh per month. As per SEBI’s service rules, the chairman is entitled to a rent-free unfurnished house. If private accommodation is used, they receive House Rent Allowance and 10% of their basic pay as compensation. This shows that the rent accomodation provided to Chairman clearly violates the rules but SEBI has provided its justification.

What are SEBI accomodation rules?

The SEBI has following accomodation rules:

(1) The Chairman and a whole-time Member shall be entitled to rent free unfurnished house and the Board shall approve the type of accommodation, purchase price or rent of the house to be used for residence by the Chairman or a whole-time Member.
(2) Charges for water, electricity and fuel consumed in the house shall be borne by the occupant of the house.
(3) Where the Chairman or a whole-time Member occupies his own accommodation or makes private arrangements, he shall be entitled to a compensation comprising of 10 per cent of his Basic Pay and House Rent Allowance as admissible to a Group ’A’ officer of the Government of India.

What SEBI Said?

When questions were asked, SEBI clarified that the lease complies with its board-approved accommodation policy, which allows leased housing for its chairman, whole-time members, executive directors, and officers. The regulator said the size and rent of the current premises are within the approved limits and were determined on the basis of a valuation report from a leading property valuer.