taxation of cash recd instead of ESOPS

Yes it's taxable income in hand of individual

Under which head and how??

As per a recent circular issued by the income tax department, the condition that STT should be paid on the acquisition of shares to qualify for the exemption from long-term capital gains (LTCG) tax is not applicable to shares allotted through ESOP, so long-term capital gain arising on sale of shares acquired under SEBI

it's profit in lieu of salary and it's taxable