'Hindenburg report not the basis for action against Buch'; Lokpal gives clean chit to former SEBI chief Madhabi Puri
Madhabi Puri: In its report published on August 10, 2024, Hindenburg Research had alleged that Madhabi Puri Buch and her husband held stakes in some foreign funds, which were allegedly linked to the ongoing money laundering investigation against the Adani Group. However, Buch and her husband have rejected these allegations from the beginning. Now the Lokpal, which is investigating the matter, has given them a clean chit.
The anti-corruption ombudsman provided relief to former SEBI chief Madhabi Puri Buch. The Lokpal, in disposing of the allegations made against former SEBI chief Madhabi Puri Buch in terms of the report by Hindenburg Research, called the allegations against him as not proved and frivolous. Also stated that the allegations are made in the absence of material evidence. No investigation is needed in such.
The Lokpal declared on Wednesday that all the complaints made against Madhabi Puri Buch during the year gone by had essentially been grounded in the complaint of a short seller trader. The objective of which had been to uncover or encircle the Adani Group of Companies.
The six-judge bench led by Lokpal Chief Justice AM Khanwilkar stated in the ruling that the allegations levelled in the grievances are based on assumptions and hypotheses. There is no proof of any description in lieu of them. No investigation can be directed in such a circumstance against such allegations. Referring to an earlier ruling in the case, the Lokpal stated that the Hindenburg report can't be the sole grounds for action against Buch.
The order also states that the complainants are aware of this situation. They tried to make allegations influenced by the report. But our analysis of the allegations concluded that they are unconfirmed, unproven and frivolous.
Trinamool Congress (TMC) MP Mahua Moitra had filed a complaint with the Lokpal on September 13 last year against the former SEBI chief. It was also demanded that the Enforcement Directorate (ED) or Central Bureau of Investigation be sent for preliminary investigation of the matter. Apart from Mahua Moitra, some other people had also complained in this matter.
In its report published on August 10, 2024, Hindenburg Research had alleged that Madhabi Puri Buch and her husband Dhawal Buch have a stake in the Mauritius offshore company 'Global Dynamic Opportunity Fund'. Hindenburg had claimed that Gautam Adani's brother Vinod Adani has invested billions of dollars in this company. It was alleged that this money was used to boost the stock prices. However, Buch and her husband rejected these allegations and said that Hindenburg has made these attacks to damage their reputation.
It is worth noting that Buch, who took over as the head of the Securities and Exchange Board of India (SEBI) on March 2, 2022, left the post on February 28 this year after the completion of her tenure.
