Lokpal nixes 5 plaints against Sebi ex-chief

NEW DELHI: In a relief for former Sebi chief Madhabi Puri Buch, anti-corruption watchdog Lokpal has disposed of complaints against her, describing them as "untenable, unsubstantiated and bordering on frivolity".

After examining all five charges against Puri Buch, the agency decided against ordering an investigation. "...we have concluded that the allegations in the complaint(s) are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences," it said.

Complainants, including Trinamool lawmaker Mohua Moitra, had approached the Lokpal, alleging conflict of interest and quid pro quo by Buch during her tenure as a whole-time member and subsequently as Sebi chairman.

"...the complaint(s) under consideration were essentially founded on the Hindenburg Report dated Aug 10, 2024, by a known short seller trader whose focus was to expose or corner Adani Group of companies.

As noted in our order dated Sept 20, 2024, that report by itself cannot be made the sole basis to escalate action against the RPS (respondent public servant)," the six-member bench led by chairperson Justice AM Khanwilkar said in its 36-page order.

There were five main allegations, including the former regulator and her husband Dhaval Buch investing in a fund linked to investments in Adani group companies which were under scrutiny for stock price manipulation. Puri Buch was accused of not disclosing her investments.

Based on her response, the Lokpal concluded that she was not involved with the probe and she and her spouse had redeemed their investments before the investigations started. It also noted that Puri Buch and Dhaval were not in control of where the fund invested the money.

On allegations that Dhaval received money from M&M Group on the pretext of consultancy, Lokpal said he was a qualified professional who took up the assignment post-retirement and his remuneration was much less than what he earned at Unilever. It also dismissed suggestions of Puri Buch influencing cases against M&M Group, pointing out that three cases were not related to the group.

The watchdog also dismissed charges of quid pro quo in the case of Blackstone, where Dhaval was engaged in a consulting role.


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