Congress attacks Sebi chief's ties to advisory firm, claims conflict of interest, criminal conspiracy

NEW DELHI: Congress on Tuesday levelled fresh allegations of "conflict of interest" against Sebi chairperson Madhabi Puri Buch and said that an advisory firm in which she held 99% stake had provided consultancy services to the Mahindra and Mahindra Group, Dr Reddy's, ICICI, Pidilite Industries, Sembcorp and Visu Leasing and Finance, while she held senior positions at the regulatory agency.

At a press conference, Congress spokesperson Pawan Khera said the Sebi chief's husband, Dhaval Buch, had received nearly Rs 4.8 crore from M&M Group, while the advisory firm Agora Advisory had received close to Rs 2.6 crore from the company, accounting for 88% of its revenue of just under Rs 3 crore. He said that the payments were made while Puri Buch was adjudicating cases against the M&M Group.

The regulatory agency's spokesperson did not comment on the allegations.

Pointing to the joint statement issued by the couple on Aug 11 after short-seller Hindenburg Research first revealed their holdings in two consulting firms - one in India and the second in Singapore - Khera alleged that contrary to the claims made by Dhaval and Puri Buch of the entities being dormant, the Indian entity has been "actively providing advisory/consulting services". Late on Aug 11, Hindenburg had demanded that Puri Buch disclose the full list of clients.

Congress alleged that Agora Advisory provided services to six companies, and they are all listed companies, regulated by Sebi. "This isn't just a case of wilful concealment; it's a case of wilful lying... Today's revelations will prove that it is not just corruption - it is a criminal conspiracy, absolutely brazen and shameless in its execution," the Congress functionary said.

Alleging a link between payments and adjudication, Congress said Dhaval received Rs 1.7 crore from M&M Group in 2019-20 and over Rs 3 crore in 2020-21, which coincided with five settlement orders issued by the regulatory agency.

Khera said any income that Agora Advisory received from these companies amounted to conflict of interest and violated Section 5 of Sebi's Code on Conflict of Interest for Members of the Board (2008).


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