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The Congress party has accused Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI), and her husband Dhaval Buch of earning Rs 2.95 crore from six SEBI-regulated companies between 2016 and 2024. The Opposition party claims that the income was generated through Agora Advisory Private Limited, a consulting firm in which Buch holds a 99% stake, registered in May 2013. This accusation follows the allegations made by American short-seller Hindenburg Research, which accused Buch and her husband of holding stakes in offshore entities linked to alleged money laundering and stock price manipulation by the Adani Group.
Congress spokesperson Pawan Khera alleged that the Rs 2.95 crore was paid to Agora Advisory by companies such as Mahindra and Mahindra, ICICI Bank, Dr Reddy’s, Pidilite, Sembcorp, and Visu Leasing and Finance. Khera highlighted that Buch joined SEBI as a whole-time director in 2017 and became its chairperson in 2022. He further asserted that despite Buch claiming Agora Advisory became dormant upon joining SEBI, evidence suggests otherwise, indicating a potential conflict of interest as she earned money from companies SEBI regulates.
Khera specifically claimed that Mahindra and Mahindra paid Rs 2.59 crore to Agora Advisory and Rs 4.78 crore to Dhaval Buch personally between 2019 and 2021. He suggested a possible quid pro quo relationship between the Buchs and Mahindra and Mahindra, citing five SEBI orders passed in favor of the company between 2018 and 2021. Khera argued that these actions violate SEBI's code of conduct for employees, which prohibits them from receiving income from companies they regulate.
Mahindra and Mahindra, however, vehemently denied the allegations as “false and misleading”. In a statement, the group explained that Dhaval Buch was hired in 2019 for his expertise in supply chain management, after his retirement as Unilever’s global chief procurement officer. They highlighted Buch's involvement with Bristlecone, a Mahindra subsidiary, and his current role on the Board of Bristlecone. The statement emphasizes that Buch joined Mahindra Group three years before Madhabi Puri Buch was appointed SEBI Chairperson, refuting the quid pro quo accusations. Additionally, they rejected the relevance of the five SEBI orders mentioned by Khera, stating that three of them do not pertain to Mahindra or its subsidiaries.
The Congress party has called for an explanation from Prime Minister Narendra Modi regarding the appointment of Madhabi Puri Buch as SEBI chairperson, questioning whether he was aware of Buch's shareholding in Agora Advisory and the potential conflict of interest. The party has raised concerns about the due diligence process undertaken by the Intelligence Bureau, and whether Buch's appointment was made despite potential compromises in her position. This incident has sparked a debate on the transparency and accountability of SEBI officials, highlighting potential conflicts of interest within the regulatory body.
Source: Madhabi Buch, husband earned crores from SEBI-regulated companies between 2016-’24: Congress