Lokpal on Wednesday issued a clean chit to former SEBI chief Madhabi Puri Buch on charges of corruption against her on the basis of a Hindenburg report, declaring that the allegations were “bordering on frivolity,” PTI reported.
Allegations Deemed Baseless Against Ex-SEBI Chief
The anti-graft body said allegations against the former SEBI chief were untenable, unsubstantiated and borderline frivolous. They referred to the accusations as “presumptions and assumptions” which were not based on any verifiable data.
The Lokpal said that the complaints against Madhabi Puri Buch, including the one by TMC MP Mahua Moitra, filed last year were founded on a report by “a known short seller trader whose focus was to expose or corner Adani Group of Companies”.
Lokpal’s Official Stand
While rejecting the complaints, the six judge bench presided by Lokpal chairperson Justice A M Khanwilkar said the Hindenburg report could not be the only reason to seek action against Buch.
Buch, who became the head of the Securities and Exchange Board of India (SEBI) on March 2, 2022, submitted her resignation from office on February 28, this year following the end of her term.
In November last year, the anti-corruption ombudsman had sought Buch’s explanation in response to complaints against her.
Complainants raised five allegations against Buch during oral arguments and in their written submissions, but the Lokpal ultimately dismissed them due to lack of evidence.
Hindenburg’s Claims Refuted
In its August 10, 2024, report, Hindenburg Research claimed that Buch and her husband held interests in shadowy offshore funds involved in the claimed money-diverting scandal against the Adani Group.
Buch and her husband had dismissed the claims stating the short-seller was trying to undermine the credibility of the capital markets regulator and attempting character assassination.
Adani Group had also called the claims malicious and selective public information manipulation. Hindenburg Research founder Nathan Anderson had confirmed the closure of the firm in January this year.
