The anti-corruption ombudsman, Lokpal, on Wednesday dismissed all complaints against former SEBI chief Madhabi Puri Buch.
These complaints, based on a Hindenburg Research report, alleged impropriety and conflict of interest.
The Lokpal termed the accusations as based on ‘presumptions and assumptions’ without any verifiable evidence.
The complaints, including one filed by TMC MP Mahua Moitra, stemmed from Hindenburg’s August 10, 2024, report.
It claimed Buch and her husband had links to offshore funds used in an alleged money-siphoning scheme involving the Adani Group.
Both Buch and the Adani Group denied the charges, calling them baseless and malicious.
The Lokpal’s six-member bench, chaired by Justice AM Khanwilkar, ruled that the allegations did not warrant any investigation under the Prevention of Corruption Act.
The order stated that the complaints lacked material support and bordered on frivolity.
Hindenburg Report Not Valid Ground For Action
The Lokpal stressed that the Hindenburg report alone was not a valid basis to pursue action against Buch.
Complainants had attempted to frame separate allegations, but the Lokpal found them ‘untenable’ and ‘unsubstantiated’.
Buch, who headed SEBI from March 2, 2022, to February 28, 2024, responded to the complaints via an affidavit filed on December 7, 2024.
The Lokpal had earlier sought her explanation and scheduled oral hearings to examine both parties’ positions.
Oral Hearings & Legal Submissions Reviewed
The Lokpal held oral hearings on April 9 and allowed parties to file written submissions.
Buch’s legal counsel presented detailed arguments, while only one complainants’ lawyers spoke at length.
Another complainant opted for written submissions, and the third did not appear.
Complainants cited sections 7 and 11 of the Prevention of Corruption Act, alleging Buch took undue advantage.
The Lokpal reviewed five main allegations in detail and dismissed them all.
Hindenburg Research, whose founder later announced its closure in January, was noted as a ‘known short seller’ with a motive to target the Adani Group.
The Lokpal concluded that the complaints against Madhabi Puri Buch failed to meet the legal threshold and closed the case.
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