New Delhi: Senior advocate and activist Prashant Bhushan has written to the Reserve Bank of India (RBI) governor opposing the extension granted to Sandeep Bakhshi as the managing director and chief executive officer of the ICICI, alleging “widespread frauds, and egregious labour law violations” during his tenure.In a 10-page letter, Bhushan sought the RBI to use its statutory powers, duties and supervisory jurisdiction under the Banking Regulation Act, 1949, particularly Sections 35A, 35B, 36AA,10B and allied provisions, and take action. “This representation highlights a comprehensive account of persistent regulatory violations, systemic governance failures, widespread frauds, and egregious labour law violations during the tenure of Mr. Sandeep Bakhshi, and respectfully submits that any approval for his continuation or re-appointment would be contrary to the statutory mandate imposed upon the Reserve Bank of India,” he said.Bhushan alleged that the RBI itself imposed a number of penalties during his tenure between 2019-2025, amounting to crores of rupees. Bakhshi took over as MD & CEO in October 2018, following the departure of Chanda Kochhar. According to an Economic Times report, the decision was taken at the board meeting held on January 17 and the board noted that the reappointment is in line with the RBI’s Commercial Banks: Governance Directions, 2025.“These repeated penalties, imposed under Section 47A of the Act, are not technical or minor breaches but pertain to fundamental aspects of banking regulation, including lending discipline, fraud reporting, cyber security and customer protection,” Bhushan wrote in the letter.He alleged that the cumulative effect of these penalties demonstrates a “persistent pattern of non-compliance” and a “failure of internal controls, risk management and supervisory oversight” and that such repeated regulatory violations under the stewardship of the same Managing Director “cannot be viewed in isolation; rather, they indicate systemic governance failure and managerial inadequacy”. Listing a number of financial and other fraud cases reported in the media, Bhushan said, “The statutory framework does not require the Reserve Bank of India to wait for catastrophic failure before intervening; the existence of such a pattern itself triggers the obligation to act in public interest.”Bhushan also alleged that the Union labour ministry found that the bank failed to provide evidence for its disciplinary actions, failed to furnish relevant records despite repeated directions, and also appeared incapable of justifying its actions even under its own ICICI Group Code of Business Conduct and Ethics, 2025. He also cited arbitrary large-scale terminations, including labelling around 800 employees as “absconding” within five months (January-June 2024), widely reported in the media, raising doubts about these claims, as a result of which proceedings were initiated to seek prosecution sanction against Bakhshi. Further, he highlighted non-compliance with the GST framework alleging that it led to heavy penalties and liabilities. “The record indicates that the Additional Commissioner Revenue (Appeals), West Bengal raised a demand of Rs 49,11,92,021 on 15.09.2025, followed by a demand of RS 16,03,30,178 by the Deputy Commissioner Revenue, West Bengal on 30.12.2025; significantly higher demands were raised by the Additional Commissioner, CGST & Central Excise, Mumbai East amounting to Rs 2,37,90,04,448 on 17.12.2025 and RS 76,86,70,7944 on 19.03.2026, along with demands of Rs 10,07,61,9584 and Rs 5,22,41,4876 by the Maharashtra GST Department (Appeal) and Order in Original dated 21.02.2026 and 04.01.2025 respectively, culminating in an aggregate demand and notice amounting to approximately Rs 12,247,26,90,51 (i.e., over ₹1224 crores),” Bhushan alleged. “The magnitude, frequency and geographical spread of these demands”, he added, “clearly demonstrate systemic lapses in tax compliance and internal audit controls, which cannot be attributed to isolated or inadvertent errors but indicate deeper governance and supervision failures”.As a result, the letter added, the affairs of the bank under Bakhshi have been inconsistent with statutory obligations, prudent financial management and the standards expected of a regulated banking entity.In 2024, The Morning Context had in a report claimed that Bakhshi indicated that he wanted to be relieved as managing director and CEO of the bank, and that the RBI was “dead against” it.ICICI had, however, denied these claims as “baseless”, “misleading” and “figment of imagination”.