Madhabi Puri Buch Gets Clean Chit from Lokpal Over Hindenburg Allegations

The anti-corruption watchdog Lokpal has given a clean chit to former SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, dismissing complaints of misconduct, impropriety, and conflict of interest that were sparked by a controversial report from US-based short-seller Hindenburg Research.

In a comprehensive 116-page ruling, a six-member bench led by Lokpal Chairperson Justice A.M. Khanwilkar found no verifiable evidence to support the three complaints filed against Buch, including one by Trinamool Congress MP Mahua Moitra. The order emphasized that the allegations were based on presumptions and lacked material substance, stating there was no case under the Prevention of Corruption Act to warrant an investigation.

Accusations Rooted in Hindenburg’s Report

The complaints emerged following allegations by Hindenburg Research in 2024, which claimed that Buch and her husband held investments in offshore funds allegedly linked to the Adani Group, even as SEBI was investigating the conglomerate. Other accusations included alleged quid pro quo dealings involving companies such as Mahindra & Mahindra, Blackstone Inc., and Wockhardt Limited, and improper encashment of ESOPs from ICICI Bank.

However, the Lokpal found these charges lacking in credibility. “The allegations… are more on presumptions and assumptions and not supported by any verifiable material,” the order noted.

No Conflict of Interest or Undue Gains

On the claim that Buch’s investments influenced SEBI’s probe into Adani, the Lokpal said her actions were vindicated by contemporaneous official records. The tribunal also found that the investments in question had been redeemed well before SEBI’s investigations into Adani began, and there was no evidence of quid pro quo or personal gain.

The Lokpal also dismissed allegations surrounding ESOPs encashed from ICICI Bank, stating that such benefits were common and part of long-term compensation practices in many companies.

Politically Motivated Complaints

The tribunal noted that the complaints appeared to be politically charged and sought to sensationalize the matter. It also cited that the Supreme Court had earlier found SEBI’s investigation into the Adani Group to be “just and proper,” adding further credibility to Buch’s position.

“The complainant(s), by making such unverified and flimsy or fragile allegations… has inevitably trivialised the process before the Lokpal,” the order said.

Clean Chit and Closure

Buch had responded to the complaints with a detailed 31-page affidavit, calling the allegations politically motivated. Following oral hearings earlier this year, the Lokpal found no merit in any of the allegations, concluding that none met the legal criteria for a corruption case.

Buch served as SEBI chairperson from March 2, 2022, to February 28, 2024. She had consistently denied any wrongdoing, as had the Adani Group.

In its final remarks, the Lokpal stated, “The complaints are untenable, unsubstantiated, and bordering on frivolity,” officially closing the case.

Sources By Agencies

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