Government Clears Former SEBI Chairperson of all Charges

Hellobanker Team

5 days ago

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The Government of India has cleared former SEBI Chairperson of all Charges. There are no pending Lokpal cases against former Chairperson, SEBI.

Various allegations of bribery, corruption and financial misconduct were raised against former SEBI Chairperson – Madhabi Puri Buch.

There are several allegations against Madhabi Puri Buch. The opposition claims that while she was leading SEBI, she continued to receive payments from her previous employer, ICICI Bank, which they say is a conflict of interest. They believe this could have influenced her actions as SEBI chief. In addition, Zee founder Subhash Chandra had also accused her of corrupt practices.

Apart from these political accusations, SEBI employees had also raised their own concerns. Some employees filed complaints with the finance ministry about “toxic work culture” within SEBI. SEBI dismissed these claims, suggesting that outside influences may be behind these complaints.

Hindenburg Research, in its report published on August 10, 2024, alleged that Buch and her husband had stakes in shadowy offshore funds used in the alleged money-siphoning scam linked to the Adani Group.

Another key allegation was that Buch’s husband, Dhaval Buch, received over ₹4.78 crore as consultancy fees from Mahindra & Mahindra (M&M) Group while SEBI was handling regulatory issues related to the group.

The Public Accounts Committee (PAC) of Parliament was given the responsibility to investigate these allegations. The PAC is a key committee in Parliament that oversees government finances and reviews the work of various public organizations. It is made up of 22 members from both the Lok Sabha and Rajya Sabha. These members, from multiple political parties, have the authority to call officials to testify before them.

But, former SEBI Chairperson did not appear before the Public Accounts Committee (PAC). She said that she did not appear due to a sudden and unavoidable personal exigency and adjourned the meeting. The Committee on Public Accounts considered her request for exemption from personal appearance.

TMC MP Mahua Moitra filed complaint against former SEBI Chairperson and the case was listed before the Lokpal.

The Lokpal said all the complaints, including the one filed by TMC MP Mahua Moitra last year, were basically “based on the report of a known short seller trader with an intent to expose or corner the Adani Group of Companies”.

All the complaints were disposed of by a six-member bench headed by Lokpal Chairperson Justice A M Khanwilkar. 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 completion of her term.

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