Lokpal Clears Former SEBI Chairperson Madhabi Puri Buch of Corruption Allegations

The Lokpal has dismissed complaints against former SEBI Chairperson Madhabi Puri Buch, which were based on a report by Hindenburg Research. The complaints were found to lack verifiable evidence and were deemed speculative. Buch and her husband denied the allegations, asserting that they were part of an attempt to undermine her credibility. The ruling, made by a six-member panel, concluded that the claims did not warrant further investigation. This decision highlights the importance of substantiated evidence in corruption allegations.

By Narendra Chaudhary May 28, 2025, 21:13 IST

Lokpal Dismisses Complaints Against Madhabi Puri Buch

On Wednesday, the Lokpal, India's anti-corruption ombudsman, dismissed allegations of misconduct and conflict of interest against Madhabi Puri Buch, the former Chairperson of SEBI. The complaints were based on a report from Hindenburg Research, which the Lokpal found to be based on "presumptions and assumptions" without any substantiated evidence.

Among those who filed complaints was Mahua Moitra, a Member of Parliament from the Trinamool Congress. The allegations, submitted last year, referenced a Hindenburg report from August 10, 2024, which claimed that Buch and her husband had investments in obscure offshore funds purportedly linked to a money-laundering operation involving the Adani Group.

The Lokpal remarked that the complaints were primarily rooted in a report from a known short-seller aiming to target the Adani Group. Buch and her husband refuted the claims, arguing that the short-seller's intent was to damage the reputation of the capital markets regulator and engage in character defamation. The Adani Group also rejected the report, labeling its claims as malicious and a distortion of selective public information.

In its ruling, the Lokpal determined that the allegations were largely speculative and lacked any verifiable evidence, thus not warranting an investigation. The decision was made by a six-member panel led by Justice A M Khanwilkar, the Lokpal Chairperson.

Buch held the position of SEBI chief from March 2, 2022, until her term concluded on February 28, 2025.

The Lokpal emphasized that the Hindenburg report alone could not serve as a basis for action against Buch. It noted that the complainants, aware of this limitation, attempted to present allegations independent of the report, but these were ultimately found to be unsubstantiated and bordering on frivolous.

On November 8, 2024, the Lokpal requested an explanation from Buch regarding the complaints filed by Moitra and two others. Buch submitted her response through an affidavit on December 7, addressing both preliminary matters and specific allegations.

Subsequently, the Lokpal allowed for oral hearings on December 19, with proceedings continuing and oral arguments presented on April 9, 2025, after additional documents and written statements were submitted.

During the hearings, the complainants invoked Sections 7 and 11 of the Prevention of Corruption Act, 1988, alleging that Buch had gained undue advantages. The Lokpal meticulously reviewed five key allegations raised during the oral and written submissions before formally dismissing the complaints.