Lokpal clears former SEBI chief Madhabi Puri Buch over conflict of interest claims

In a significant development, the Lokpal of India has dismissed all complaints filed against former SEBI chairperson Madhabi Puri Buch in connection with allegations stemming from the Hindenburg Research report dated August 10, 2024. The anti-corruption watchdog found no credible evidence to warrant a probe.

In a detailed order passed by a six-member bench led by Justice A.M. Khanwilkar, the Lokpal stated that the allegations were based on "presumptions and assumptions" and lacked any verifiable material to invoke offences under the Prevention of Corruption Act, 1988. The order concluded that the complaints did not meet the legal threshold for initiating an investigation and therefore stood disposed of.

“...the allegations in the complaints are more on presumptions and assumptions and not supported by any verifiable material… do not attract the ingredients of the offences… so as to direct an investigation. Accordingly, these complaints are disposed of,” the order stated.

The complaints examined by the Lokpal shared common material sourced primarily from the Hindenburg report. After reviewing the submissions, the Lokpal looked into five key charges made against Buch:

Alleged investments by Buch and her husband Dhaval Buch in a fund with exposure to Adani Group companies.

Claims of quid pro quo via consultancy fees from companies like Mahindra & Mahindra and Blackstone Inc.

Receipt of rental income from Wockhardt alleged to be in the nature of quid pro quo.

Gains made from the sale of ICICI Bank ESOPs between 2017 and 2024.

Alleged pretence of recusal from regulatory matters involving M&M and Blackstone.

After examining these allegations individually, the Lokpal concluded that none had merit or were substantiated by evidence.