Lokpal clears ex-SEBI chief Madhabi Puri Buch in Hindenburg case probe

There is a big news related to ex-SEBI chief Madhabi Puri Buch. The anti-corruption ombudsman on Wednesday has disposed of charges of misconduct and conflict of interest against former Sebi chief Madhabi Puri Buch based on a report by Hindenburg Research. The ombudsman termed the allegations as “conjectures and assumptions” not supported by any verifiable material.

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”.

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. He denied the allegations, saying the short-seller was attacking the credibility of the capital markets regulator and attempting character assassination. The Adani Group had also termed the allegations as malicious and selective manipulation of public information.

In its order on Wednesday, the Lokpal said, “It is concluded that the allegations made in the complaint(s) are based on conjectures and assumptions and are not supported by any verifiable material and do not attract the elements of offences… hence an investigation is directed for the same.”

Accordingly, these complaints are disposed of, a six-member bench headed by Lokpal Chairperson Justice A M Khanwilkar said in the order. 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. Citing an earlier order in this regard, the Lokpal said that the Hindenburg Report cannot be made the sole basis for taking action against Buch.

In a comprehensive order dated May 28, 2025, the six-member Lokpal bench headed by Justice A.M. Khanwilkar concluded that the allegations were “more on presumptions and assumptions and not supported by any verifiable material.”

On the ₹5 crore investment by Buch and her husband in a fund linked to an Adani Enterprises director, the Bench observed that the money had been redeemed in 2018—well before SEBI began its Adani probe in 2020. “We find that the stand taken by the RPS is fully vindicated from the contemporaneous official records… this allegation must fail,” the Lokpal said.

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.

Rejecting the claim of quid pro quo, the Lokpal noted that “this allegation is speculative and borders on frivolity,” adding: “It is not unknown that such talented professionals are hand-picked and in demand for consultancy services post-retirement as well.”

On the claim that she may have influenced other SEBI members, the Lokpal held: “This allegation, to say the least, is preposterous… If entertained, we may be doubting the integrity of even a former High Court Judge who had headed the Takeover Panel.”

The Lokpal also rejected allegations that Buch received rental income from Carol Info Services Ltd., linked to Wockhardt Ltd., during SEBI’s insider trading probe into Wockhardt.

“The rental agreement with ‘Carol’ was executed four years before the settlement application was filed by Wockhardt… it is incredible to assume that the RPS had executed the rental agreement in anticipation,” the order said.