Lokpal Dismisses Allegations Against Former SEBI Chief Madhabi Puri Buch: What You Need to Know

Lokpal's Ruling on Madhabi Puri Buch's Allegations

New Delhi: The Lokpal, India's anti-corruption ombudsman, has dismissed complaints against former SEBI chairperson Madhabi Puri Buch, which were based on a report from Hindenburg Research. The Lokpal characterized the allegations as mere 'presumptions and assumptions' lacking any credible evidence.

The complaints, including one from TMC MP Mahua Moitra, were primarily based on claims made by a known short-seller aiming to undermine the Adani Group. Hindenburg's report, released on August 10, 2024, suggested that Buch and her spouse had investments in obscure offshore funds linked to a money-laundering scandal involving the Adani Group.

Both Buch and her husband have refuted these claims, asserting that the short-seller's intent was to damage the reputation of the capital markets regulator and to conduct a character assassination.

The Adani Group also dismissed the allegations as malicious and a manipulation of selective information.

In its ruling, the Lokpal concluded that the complaints were based on unfounded assumptions and did not warrant an investigation. The six-member bench, led by Justice A M Khanwilkar, stated that the allegations did not meet the criteria for any offenses.

Buch, who served as the head of SEBI from March 2, 2022, until February 28 of this year, had previously been asked to respond to the complaints. The Lokpal noted that the Hindenburg report alone could not justify further action against her.

The Lokpal's order emphasized that the allegations were unsubstantiated and bordering on frivolity. The complaints were formally dismissed, concluding a lengthy process that included oral hearings and submissions from both sides.

The Lokpal had previously requested Buch's explanation regarding the complaints filed by Moitra and others, to which she responded with an affidavit on December 7, 2024. Following this, the Lokpal provided an opportunity for oral arguments, which took place on April 9.

During these proceedings, the complainants focused on sections 7 and 11 of the Prevention of Corruption Act, alleging that Buch had gained undue advantage. The Lokpal meticulously addressed five key allegations raised during the hearings before ultimately dismissing them.