Lokpal Dismisses Conflict of Interest Allegations Against Former SEBI Chief Madhavi Puri Buch

The Lokpal, the agency responsible for investigating corruption complaints, has dismissed allegations of conflict of interest against Madhavi Puri Buch, the former head of the market regulator SEBI. The accusations were based on a report from Hindenburg Research, which the Lokpal deemed to be entirely speculative and lacking substantial evidence. The six-member bench, led by Lokpal Chairperson Justice A M Khanwilkar, stated that there was no indication of any criminal activity. The order noted that the complaints were addressed, and it was concluded that the allegations were not credible.

The allegations stemmed from complaints filed by TMC MP Mahua Moitra, linked to a report released on August 10, 2024, by Hindenburg Research, a US-based short-seller firm. This report claimed that Buch and her husband had interests in obscure offshore funds allegedly involved in a money siphoning scandal connected to the Adani Group. The Lokpal remarked that the complaints were fundamentally based on a report from a known short-seller aiming to expose or target the Adani Group of Companies.

Both Buch and the Adani Group have denied the allegations. Buch described the claims as an attempt to undermine the credibility of the capital market regulator, while the Adani Group labeled them as 'malicious' and accused the complainants of manipulating selective public information. In response to the Lokpal's notice, Buch submitted a detailed affidavit addressing each allegation and raising preliminary legal objections on December 7, 2024.

Previously, the Lokpal had requested Buch to respond to the complaints by November 8, 2024. In its latest ruling, the six-member bench emphasized that the Hindenburg report alone could not justify the initiation of an investigation. The order stated that the complainants attempted to clarify their allegations independently of the report, but upon analysis, it was concluded that the claims were unsubstantiated, baseless, and trivial. With these observations, the Lokpal bench formally resolved the complaints, concluding the related proceedings.