Lokpal seeks SEBI chairperson Madhabi Puri Buch's response on Hindenburg charges: Report
The Lokpal clarified that its directive is purely procedural and not an expression of opinion on the substance of the allegations. The anti-corruption body has given Buch four weeks to submit her response.
- Nov 9, 2024,
- Updated Nov 9, 2024 5:02 PM IST
India’s anti-corruption ombudsman, Lokpal on November 8 requested an explanation from SEBI chairperson Madhabi Puri Buch in response to allegations of impropriety and conflict of interest. The complaints were filed by a Lok Sabha member and two others, based on a report from the US-based short-seller Hindenburg Research, according to an official order.
The Lokpal clarified that its directive is purely procedural and not an expression of opinion on the substance of the allegations. The anti-corruption body has given Buch four weeks to submit her response.
Business Today was unable to verify the report independently.
The order, signed by Lokpal chairperson Justice AM Khanwilkar and five other members, states, “We find it appropriate to call upon the named RPS (respondent public servant) to offer an explanation regarding the allegations made against her in the respective complaints.”
The order further explained that this step is part of the procedure required under Section 20 of the Lokpal Act, which mandates that Buch be given the opportunity to respond before the bench decides whether a prima facie case exists for investigation.
Buch has been asked to respond to all three complaints, and the Lokpal indicated that she may submit a consolidated explanation to avoid repetition. “This order is not an expression of our opinion on any matter in issue, either way. It is simply a procedural directive,” the order reiterated.
The Lokpal's order was signed by Justices L Narayana Swamy, Sanjay Yadav, and Ritu Raj Awasthi, and members Sushil Chandra and Ajay Tirkey. It also specified that Buch’s response must be filed within four weeks of receiving the order. The matter is scheduled for further consideration on December 19.
Earlier, in an order dated September 20, the Lokpal had stated that a complaint from the Lok Sabha member regarding Buch’s alleged conflict of interest and impropriety did not provide sufficient grounds for a full investigation.
The complaint, along with two others, was based on a report by Hindenburg Research, which accused Buch and her husband of having stakes in offshore funds linked to the alleged money-laundering scandal involving the Adani Group. Both Buch and her husband have denied the allegations, accusing Hindenburg Research of attempting to discredit the capital markets regulator.
In her complaint, Trinamool Congress MP Mahua Moitra, who filed one of the complaints on September 13, urged the Lokpal to forward the case to the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI) for a preliminary probe.
On September 20, the Lokpal had also asked for details from the complainants regarding their efforts to verify the authenticity of Hindenburg Research's August 10, 2024 report. The matter was set for hearing on October 17 and later rescheduled to November 8.
On October 17, the Lokpal noted that the complainants had submitted affidavits in response to its earlier order. Additionally, a third complaint was filed on October 14, reiterating similar allegations.
(With inputs from PTI)
India’s anti-corruption ombudsman, Lokpal on November 8 requested an explanation from SEBI chairperson Madhabi Puri Buch in response to allegations of impropriety and conflict of interest. The complaints were filed by a Lok Sabha member and two others, based on a report from the US-based short-seller Hindenburg Research, according to an official order.
The Lokpal clarified that its directive is purely procedural and not an expression of opinion on the substance of the allegations. The anti-corruption body has given Buch four weeks to submit her response.
Business Today was unable to verify the report independently.
The order, signed by Lokpal chairperson Justice AM Khanwilkar and five other members, states, “We find it appropriate to call upon the named RPS (respondent public servant) to offer an explanation regarding the allegations made against her in the respective complaints.”
The order further explained that this step is part of the procedure required under Section 20 of the Lokpal Act, which mandates that Buch be given the opportunity to respond before the bench decides whether a prima facie case exists for investigation.
Buch has been asked to respond to all three complaints, and the Lokpal indicated that she may submit a consolidated explanation to avoid repetition. “This order is not an expression of our opinion on any matter in issue, either way. It is simply a procedural directive,” the order reiterated.
The Lokpal's order was signed by Justices L Narayana Swamy, Sanjay Yadav, and Ritu Raj Awasthi, and members Sushil Chandra and Ajay Tirkey. It also specified that Buch’s response must be filed within four weeks of receiving the order. The matter is scheduled for further consideration on December 19.
Earlier, in an order dated September 20, the Lokpal had stated that a complaint from the Lok Sabha member regarding Buch’s alleged conflict of interest and impropriety did not provide sufficient grounds for a full investigation.
The complaint, along with two others, was based on a report by Hindenburg Research, which accused Buch and her husband of having stakes in offshore funds linked to the alleged money-laundering scandal involving the Adani Group. Both Buch and her husband have denied the allegations, accusing Hindenburg Research of attempting to discredit the capital markets regulator.
In her complaint, Trinamool Congress MP Mahua Moitra, who filed one of the complaints on September 13, urged the Lokpal to forward the case to the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI) for a preliminary probe.
On September 20, the Lokpal had also asked for details from the complainants regarding their efforts to verify the authenticity of Hindenburg Research's August 10, 2024 report. The matter was set for hearing on October 17 and later rescheduled to November 8.
On October 17, the Lokpal noted that the complainants had submitted affidavits in response to its earlier order. Additionally, a third complaint was filed on October 14, reiterating similar allegations.
(With inputs from PTI)