Based on the Hindenburg report, the Lokpal on Wednesday cleared former Securities and Exchange Board of India (Sebi) chief Madhabi Puri Buch of graft charges.
While reviewing graft concerns against Puri Buch, the Lokpal stated that the allegations are unsupportable, unsupported, and almost frivolous. The Lokpal came to the conclusion that the complaints lacked validity and failed to prove a crime that could be prosecuted against her, based on the evidence that was submitted and legal principles.
Serious allegations of conflict of interest and financial misconduct were levelled against the Sebi chief by US short-seller Hindenburg Research and the Congress party. According to US short seller Hindenburg, in August 2024, whistleblower documents revealed that Madhabi Puri Buch, the chairperson of the Sebi, and her husband owned shares in the obscure offshore companies implicated in the “Adani money syphoning scandal.”
One of the main accusations made by Congress was that Buch benefited Blackstone, a multinational financial corporation that her husband is connected to, by promoting Real Estate financial Trusts (REITs). She was accused by the opposition of favouring Blackstone by abusing her role as chair of Sebi.
Buch was also accused of failing to report earnings from her prior employment at ICICI Bank. It was alleged that she failed to properly record the money she received. The authorities verified that Buch had paid all required fees and discovered no unlawful activity. ICICI Bank claimed that Buch received typical retirement benefits in accordance with industry standards following her retirement in October 2013; she did not receive a salary or ESOPs.
Employees at Sebi accused Buch of creating a hostile workplace culture in letters to the Finance Ministry, creating a third front against her. Sebi and political circles were alarmed by the complaints. Employee complaints over management practices resulted from the leadership’s alleged use of derogatory language and yelling at employees.
The administration spoke with workers and looked into the situation. When Sebi’s top management was urged to show greater consideration for employees, the problem was fixed. According to government sources, the discontent may be a result of Buch’s extensive reforms at Sebi, as her attempts to improve the system have encountered opposition.
