Did Lokpal Exonerate Former SEBI Chief Madhabi Puri Buch in Hindenburg Allegations?
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Synopsis
The Lokpal's recent ruling clears former SEBI Chairperson Madhabi Puri Buch of allegations tied to Hindenburg Research. With no substantial evidence found, the order critiques the complainants for presenting unverified claims. This decision adds a new chapter to the controversy surrounding Buch amidst ongoing scrutiny of Hindenburg Research.
Key Takeaways
- Lokpal clears Madhabi Puri Buch of allegations.
- Insufficient evidence found to warrant investigation.
- Critique of complainants for unverified claims.
- Transparency in financial dealings emphasized.
- Hindenburg Research faces its own ongoing controversies.
New Delhi, May 28 (NationPress) The Lokpal has exonerated former SEBI Chairperson Madhabi Puri Buch from the allegations made against her concerning the Hindenburg Research issue. The anti-corruption body, led by retired Supreme Court Justice A.M. Khanwilkar, concluded on May 28 that there was insufficient evidence to warrant an investigation into Buch.
In its order, the Lokpal stated, "The allegations in the Complaint(s) are largely based on presumptions and lack verifiable evidence, which do not fulfill the criteria for offences under Part III of the Prevention of Corruption Act of 1988. Therefore, these complaints are dismissed."
The Lokpal noted that the complainants attempted to present allegations independent of the report but found them to be untenable and bordering on frivolous.
Among the five principal allegations against Buch were claims of quid pro quo disguised as consultancy fees from M&M and Blackstone Inc., and similar accusations related to rental income from Wockhardt.
Another allegation regarding undue advantage from the sale of ICICI Bank ESOPs from 2017 to 2024 was also dismissed. The Lokpal found no evidence supporting claims that Buch had recused herself from dealings involving M&M and Blackstone Inc.
The Lokpal criticized the complainants for failing to provide credible evidence, implying that their requests for an extensive inquiry were baseless.
“The complainants are urging us to conduct an inquiry into allegations that are unfounded and speculative,” the order stated.
“By making such flimsy allegations, the complainants have trivialized the Lokpal process, which could be deemed vexatious as per Section 46 of the 2013 Act.”
Following the emergence of these allegations in August 2024, both Buch and her husband Dhaval Buch strongly refuted the claims, labeling them a “character assassination attempt” in light of an enforcement action against Hindenburg Research.
In their joint statement, they affirmed, “We staunchly deny the baseless claims made in the Hindenburg Report dated August 10, 2024. These allegations are unfounded. Our financial dealings are transparent, and we are ready to disclose any relevant documents to any authority that requests them.”
In the meantime, Hindenburg Research has ceased operations amidst significant short-selling controversies in the U.S., placing the company under scrutiny.
Point of View
It's crucial to recognize the significance of the Lokpal's ruling in maintaining the integrity of public officials. This decision reaffirms the importance of substantiated evidence in allegations against high-profile figures. It serves as a reminder that the process must remain fair and transparent, ensuring that accusations do not undermine the credibility of individuals without sufficient proof.
NationPress
10/09/2025
Frequently Asked Questions
What was the ruling of the Lokpal regarding Madhabi Puri Buch?
The Lokpal cleared former SEBI Chairperson Madhabi Puri Buch of allegations made against her regarding Hindenburg Research, stating there was no substantial evidence to warrant an investigation.
What were the main allegations against Buch?
The allegations included claims of quid pro quo related to consultancy fees and rental income, as well as claims regarding her sale of ICICI Bank ESOPs.
How did Buch respond to the allegations?
Buch and her husband strongly denied the allegations, calling them baseless and a 'character assassination attempt.' They emphasized their transparency regarding financial disclosures.
What is Hindenburg Research's current status?
Hindenburg Research has ceased operations amidst significant controversies surrounding its short-selling activities.
What does the Lokpal's order imply for future allegations?
The order highlights the necessity for credible evidence in allegations against public officials and discourages frivolous complaints.
