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SEBI Chairperson Madhabi Puri Buch (Photo: PTI)
Moitra shared an image of a formal complaint filed with the Lokpal against the Sebi chief that alleges Buch’s actions, including her involvement with offshore funds and consulting firms, have created significant conflicts of interest that could threaten India’s national interests.
Key allegations in the complaint include:
1. Conflict of interest with Adani Group: The complaint points to allegations made by Hindenburg Research, which accuses Buch of being complicit in using funds linked to Vinod Adani during her tenure as Sebi chairperson.
2. Undisclosed investments: It is alleged that Buch and her husband had investments linked to funds under Sebi’s investigation and failed to make appropriate disclosures or recuse herself from matters involving the Adani Group.
3. Consulting firms’ earnings: Buch is accused of earning nearly Rs 2.95 crore through her consultancy firm, Agora Advisory Ltd, which remained active while she was with Sebi, contrary to her claims that the firm had become dormant. Furthermore, the complaint alleges her husband’s involvement with Mahindra & Mahindra Group, earning significant income while Buch was adjudicating cases related to the group.
4. Failure to recuse in Adani matters: Despite clear conflicts of interest, the complaint claims Buch did not recuse herself from investigations involving the Adani Group, which raises concerns about her integrity as SEBI Chairperson.
Response to Hindenburg allegations
Sebi, under Buch’s leadership, issued a statement saying that all relevant disclosures were made and that Buch recused herself in cases of conflicts of interest. However, the former Finance Secretary of India and a Sebi Board Member reportedly stated that “these (disclosures) didn’t come to the notice of him as the Secretary of the department or as the member of the Board”.
The complaint urges the Lokpal to investigate the matter, citing potential violations of Sebi’s code of conduct and public trust. The accusations, if substantiated, could have serious implications for both Sebi’s credibility and India’s financial regulatory system.
Congress allegations against Buch
US investment research firm Hindenburg Research also questioned Buch’s continued silence on these emerging allegations. “These allegations apply to Buch’s Indian consulting entity with no details thus far on Buch’s Singapore-based consulting entity,” Hindenburg said in a post on X (formerly Twitter).
First Published: Sep 12 2024 | 6:10 PM IST
