Senior advocate and activist Prashant Bhushan has written to the Reserve Bank of India governor opposing the extension granted to Sandeep Bakhshi as managing director and chief executive officer of ICICI Bank, alleging widespread frauds, regulatory violations and serious labour law breaches during his tenure. In a 10-page letter, Bhushan urged the RBI to exercise its statutory and supervisory powers under the Banking Regulation Act, 1949, and take action.
Bhushan said the representation placed before the central bank described what he called a persistent pattern of regulatory violations, systemic governance failures, widespread frauds and egregious labour law violations during Bakhshi’s tenure. He argued that any approval for Bakhshi’s continuation or reappointment would be contrary to the statutory mandate imposed on the RBI.
Allegations of Regulatory Failures
Bhushan alleged that the RBI itself had imposed several penalties during Bakhshi’s tenure between 2019 and 2025, amounting to crores of rupees. He wrote that these penalties, imposed under Section 47A of the Act, were not minor or technical breaches but related to fundamental aspects of banking regulation, including lending discipline, fraud reporting, cyber security and customer protection.
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According to the letter, the cumulative effect of these penalties showed a “persistent pattern of non-compliance” and a failure of internal controls, risk management and supervisory oversight. Bhushan alleged that repeated regulatory violations under the stewardship of the same managing director could not be viewed in isolation and instead pointed to systemic governance failure and managerial inadequacy.
He also cited a number of financial and other fraud cases reported in the media, arguing that the statutory framework does not require the Reserve Bank of India to wait for catastrophic failure before intervening. He said the existence of such a pattern itself triggered the obligation to act in public interest.
GST Demands and Compliance Concerns
Bhushan also highlighted alleged non-compliance with the GST framework, claiming it had led to heavy penalties and liabilities. The letter referred to demands raised by revenue authorities in West Bengal, Mumbai East and Maharashtra, including amounts of Rs 49,11,92,021, Rs 16,03,30,178, Rs 2,37,90,04,448, Rs 76,86,70,794, Rs 10,07,61,958 and Rs 5,22,41,487.
According to Bhushan, these demands and notices together amounted to approximately Rs 12,247,26,90,51, described in the screenshot as over ₹1,224 crore. He alleged that the magnitude, frequency and geographical spread of these demands demonstrated systemic lapses in tax compliance and internal audit controls.
He further argued that the issues could not be attributed to isolated or inadvertent errors. Instead, he said they indicated deeper governance and supervision failures within the bank under Bakhshi’s leadership.
Labour Law and Governance Questions
The letter also alleged that the Union Labour Ministry had found that the bank failed to provide evidence for its disciplinary actions and failed to furnish relevant records despite repeated directions. Bhushan further claimed that the bank appeared unable to justify its actions even under its own ICICI Group Code of Business Conduct and Ethics, 2025.
He cited alleged large-scale terminations, including the labelling of around 800 employees as “absconding” within five months between January and June 2024. According to the screenshots, these reports raised doubts about the bank’s claims and led to proceedings seeking prosecution sanction against Bakhshi.
Bakhshi took over as managing director and chief executive officer in October 2018 after the departure of Chanda Kochhar. An Economic Times report cited in the screenshots said the decision on his reappointment was taken at a board meeting held on January 17, with the board noting that the reappointment was in line with the RBI’s Commercial Banks: Governance Directions, 2025.
The letter concluded that the affairs of the bank under Bakhshi had been inconsistent with statutory obligations, prudent financial management and the standards expected of a regulated banking entity. A 2024 report by The Morning Context had claimed that Bakhshi indicated he wanted to be relieved as managing director and chief executive officer, and that the RBI was “dead against” it. ICICI denied those claims as “baseless”, “misleading” and a “figment of imagination”.
