The Lokpal on Wednesday gave a clean chit to former Securities and Exchange Board of India (Sebi) chief Madhabi Puri Buch on graft allegations against her based on the Hindenburg report.
Allegations are untenable, unsubstantiated and bordering on frivolity, the Lokpal noted while considering graft complaints against Puri Buch.
The Lokpal concluded that, based on the presented evidence and legal principles, the complaints were devoid of merit and did not establish a cognisable offence or a basis for investigation against her.
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.
In August 2024, US short-seller Hindenburg claimed that whistleblower documents showed Sebi Chairperson Madhabi Puri Buch and her husband had a stake in the obscure offshore entities used in the 'Adani money siphoning scandal'.
One of the primary allegations raised by Congress was that Buch's promotion of Real Estate Investment Trusts (REITs) benefitted Blackstone, a global investment firm with which her husband is associated. The opposition accused her of misusing her position as Sebi chairperson to favour Blackstone.
Another allegation against Buch was her failure to disclose income received from her previous stint at ICICI Bank. It was claimed that the money she received was not reported properly.
Upon review, the government found no illegal transactions and confirmed that Buch had paid all necessary dues. ICICI Bank clarified that after her retirement in October 2013, Buch did not receive a salary or ESOPs, only standard retirement benefits in line with industry norms.
A third front against Buch opened when employees within Sebi sent letters to the Finance Ministry, alleging a toxic work culture under her leadership. The complaints caused concern within both Sebi and political circles. Employees accused the leadership of calling names and shouting at staff, leading to grievances about management practices.
The government investigated the matter and spoke with employees. The issue was resolved when Sebi's top management was asked to be more sensitive towards staff. Government sources suggested that the dissatisfaction may stem from the sweeping reforms Buch has implemented within Sebi, as her efforts to clean up the system have been met with resistance.
Source: India Today