'False and baseless': M&M, Dr Reddy's, Pidilite Industries respond to Cong charges against Madhabi Buch

Three companies -- Mahindra & Mahindra, Dr Reddy's and Pidilite Industries -- mentioned during the Congress' latest presser against SEBI Chairperson Madhabi Puri Buch have responded, saying the allegations levelled are "false, misleading and baseless". Mahindra & Mahindra said the company has not, at any point, requested SEBI for any "preferential treatment".

On the Congress allegations of "conflict of interest" on payments made to Dhaval Buch, the husband of Madhabi Puri Buch, M&M says it hired Dhaval Buch in 2019, specifically for his expertise in supply chain and sourcing, after he retired as Unilever's global chief procurement officer. "He has spent most of his time at Bristlecone, a subsidiary which is a supply chain consulting company. Mr. Buch is currently on the Board of Bristlecone."

The company says he joined Mahindra Group almost 3 years before Madhabi Buch was appointed as the SEBI chairperson. "Compensation has been specifically and only for Mr. Buch’s supply chain expertise and management acumen, based on his global experience at Unilever. None of the 5 SEBI orders or approvals referenced in the allegations are relevant."

On the allegations of "special favour", M&M says three out of the five approvals or the orders of SEBI do not pertain to the company or any of its subsidiaries. "One was a fast-track rights issue, which did not require any approval from SEBI. One was an order issued in March 2018, well before Mr. Dhaval started working with the Mahindra Group."

Dr Reddy's, on the Congress' allegations of its engagement with Agora Advisory Private Ltd, said for a limited period from October 2020 to April 2021, it engaged the services of Dhaval Buch of Agora Advisory Private Ltd for "leadership coaching" for Rs 6,58,000. "We routinely engage external coaches to enable significant role transitions of our leaders. Mr. Dhaval Buch’s work in India and globally for Unilever was well-suited to coach the identified leader in our company, and the remuneration paid to Mr. Buch was in line with that of other coaches."

The company clarified that the assignment started and ended well before Ms Madhabi Buch’s term as SEBI Chairperson. "Any suggestion that the Company was treated differently by SEBI as a result of this would be baseless and malafide."

Pidilite Industries Ltd, in its statement, says the company engages with multiple partners and consultants, who are renowned professionals in their respective fields. "As part of its routine requirements, the Company in FY 2019-20 had engaged Agora Advisory’s Mr. Dhaval Buch, a globally renowned supply chain and procurement professional, for his services in these areas. There have never been any enquiries or cases from SEBI vis-à-vis the company."

Congress spokesperson Pawan Khera again on Tuesday accused Buch of a "conflict of interest". "When you work somewhere, there are some rules, but Madhabi ji ignored all the rules. Madhabi ji earned Rs 2 crore 95 lakh through Agora. Most of the money, 88%, came from Mahindra & Mahindra...(her) husband Dhawal Buch received Rs 4 crore 78 lakh from Mahindra & Mahindra company between 2019-21. That too when Madhabi Puri Buch was a whole time member of SEBI, which is a violation of the rules."

He said during this period, SEBI had also issued several orders favouring Mahindra. ICICI, Sembcorp, Visu Leasing & Finance have not issued any latest statement on the allegations.