Hindenburg questions Madhabi Puri Buch's silence on Congress' allegations

Amid the conflict of interest allegations levelled by the Congress party against SEBI Chairperson Madhabi Puri Buch, the U.S.-based short-seller Hindenburg Research has criticised Buch's "silence" on these issues. In the latest statement on X, Hindenburg, which in August had released an extensive adverse report accusing Madhabi Buch and her spouse Dhaval Buch of having stakes in "obscure offshore funds" used in what it called the "Adani money siphoning scandal", said the new charges suggest she "accepted payments" from listed companies.

The SEBI chair has not issued any statement on the Congress party's latest charges against her, though the companies in question have categorically denied of any wrongdoing.

Amid the Congress allegations, Hindenburg on X accused Buch of maintaining a complete "silence" for weeks on all of the emerging issues. "New allegations have emerged that the private consulting entity, 99% owned by SEBI Chair Madhabi Buch, accepted payments from multiple listed companies regulated by SEBI during her time as a SEBI Whole-Time Member. The companies include Mahindra & Mahindra, ICICI Bank, Dr. Reddy’s and Pidilite. These allegations apply to Buch's Indian consulting entity with no details thus far on Buch's Singapore-based consulting entity."

The U.S.-based short seller, in its August report, had alleged that despite the evidence, along with over 40 independent media investigations in the case, the Indian securities regulator had taken "no public action" against the Adani Group. Linking Adani’s relationship with the SEBI Chairperson, Hindenburg said she and her husband had hidden stakes in the "offshore Bermuda and Mauritius funds", found in the same complex nested structure, used by Vinod Adani. The SEBI chairperson and her husband, however, termed these allegations "baseless" and called it "character assassination".

Congress spokesperson Pawan Khera accused Buch of a "conflict of interest" on Tuesday again, while naming a few companies including Mahindra & Mahindra, Dr Reddy's and Pidilite Industries during his presser. "When you work somewhere, there are some rules, but Madhabi ji ignored all the rules. Madhabi ji earned ₹2 crore 95 lakh through Agora. Most of the money, 88%, came from Mahindra & Mahindra...(her) husband Dhawal Buch received ₹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."

The three listed companies in question have responded, saying the allegations levelled are "false, misleading and baseless". Mahindra said the company has not, at any point, requested SEBI for any "preferential treatment". Dr Reddy's 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 ₹6,58,000. Pidilite Industries Ltd, in its statement, says the company engages with multiple partners and consultants, who are renowned professionals. "As part of its routine requirements, the Company in FY 2019-20 had engaged Agora Advisory’s Mr. Dhaval Buch for his services in these areas. There have never been any enquiries or cases from SEBI vis-à-vis the company."

The Congress party had earlier said that Buch drew ₹16 cr salary from ICICI Bank, despite being a full-time member of the market regulator. ICICI denied such claims. The Congress also alleged when Buch became wholetime member of SEBI, she rented her property in Mumbai to an affiliate of Wockhardt which paid ₹46 lakh rent last fiscal. Between 2018 and 2024, Buch, first as SEBI’s whole-time member and later as its chairperson, received ₹2.16 crore from Carol Info Services Ltd, a part of Wockhardt, Khera alleged.