Wockhardt shares fall 5% as Congress accuses SEBI's Buch of ‘corruption’

Shares of drug maker Wockhardt Ltd fell 5% on Friday to hit a low of ₹1,034.60 on the BSE after Congress accused SEBI (Securities and Exchange Board of India) chairperson Madhabi Puri Buch of “conflict of interest” and "corruption".

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, alleges Congress leader Pawan Khera.

Congress' media and publicity department chairman Khera alleges that 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.

“Wockhardt is the same company whose complaints are being continuously dealt with by SEBI. This is completely a case of corruption,” alleges Khera.

“Is it right that you rent your property to a company whose cases you are handling? Is this ethically and legally correct?” alleges Khera, asking whether Buch declared this information to the regulator.

This comes days after the Congress party alleged that the SEBI chairperson drew a regular salary from ICICI Bank, despite being a full-time member of market regulator. The party demanded that Buch should step down for alleged violation of section 54 of SEBI Act. Alleging irregularities, Khera alleged that Sebi Chairperson Buch has been drawing regular salary between 2017 and 2024 worth Rs 16.80 crore from ICICI Bank.

The lender, however, clarified that it has not paid any salary to Buch. “ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Madhabi Puri Buch after her retirement, other than her retiral benefits. It may be noted that she had opted for superannuation with effect from October 31, 2013," ICICI Bank said in its exchange filing.

On September 3, Khera asked how “her retirement or retiral benefits or pension be more than the salary” she drew when she worked with ICICI Bank. "If we calculate the average salary of Madhabi Puri Buch from 2007-2008 to 2013-14 when she was with ICICI, it was around ₹1.30 crore. But the average pension is ₹2.77 crore. How is this possible?" he alleged.

He asked if it was a retirement or retiral or pension benefit, why was there a break in 2015-16 and why it was resumed in 20216-17 when she was appointed as SEBI’s whole-time member. "If a settlement had happened in 2014-15 between Madhabi Puri Buch and ICICI, and she did not receive anything from ICICI in 2015-16, then why did the pension restart in 2016-17.”