Lokpal Clears Former SEBI Chief Madhabi Puri Buch on Hindenburg Report-Based Graft Allegations
The Lokpal of India has exonerated Madhabi Puri Buch, former Chairperson of the Securities and Exchange Board of India (SEBI), from allegations of corruption and financial misconduct that were primarily based on claims made in the Hindenburg Research report and by the Congress party. The anti-corruption ombudsman concluded on Wednesday, May 28th, that the complaints lodged against her were devoid of merit.
Corruption Allegations Found Baseless
In its findings, the Lokpal noted that the graft complaints against Ms. Buch were "untenable, unsubstantiated and bordering on frivolity." Based on the evidence presented and applicable legal principles, the Lokpal determined that the allegations did not establish any cognisable offence or provide a sufficient basis for launching a formal investigation against her. This decision effectively dismisses serious claims of conflict of interest and financial impropriety that had been levelled.
Key Accusations Reviewed and Dismissed
The allegations stemmed significantly from an August 2024 Hindenburg Research report, which claimed that Ms. Buch and her husband had undisclosed stakes in offshore entities purportedly used in financial irregularities concerning the Adani Group. Further allegations, raised by the Congress party, included accusations that Ms. Buch misused her position to favour Blackstone, a global investment firm with which her husband is associated, through the promotion of Real Estate Investment Trusts (REITs). Another claim concerned an alleged failure to properly disclose income received from her previous employment with ICICI Bank.
Regarding the ICICI Bank income, a prior government review had reportedly found no illegal transactions, confirming that Ms. Buch had paid all necessary dues and had only received standard retirement benefits post her departure in October 2013. The Lokpal's clean chit now addresses the broader corruption allegations linked to these matters. Separately, concerns raised by some SEBI employees regarding work culture under her leadership were investigated by the government, which reportedly asked SEBI's top management to be more sensitive towards staff.
The Lokpal's decision to give Madhabi Puri Buch a clean chit provides a definitive closure to the corruption allegations that arose from the Hindenburg report and other related claims. The ombudsman's findings indicate a lack of substance in these accusations, thereby clearing the former SEBI chief of the charges of financial misconduct and conflict of interest investigated under its purview.
