New Delhi: In a resounding dismissal of all corruption allegations against former SEBI chairperson Madhabi Puri Buch, the Lokpal of India has issued a 116-page order giving her and her husband, Dhaval Buch, a clean chit. The anti-corruption body concluded that the accusations were based on presumptions, assumptions, and lacked verifiable evidence. The decision brings an end to a politically charged controversy that stemmed from allegations first floated in a Hindenburg Research report.
Lokpal’s Judgement: Allegations Found to be Frivolous and Politically Motivated
A six-member Lokpal bench, headed by Justice A.M. Khanwilkar, stated that the complaints did not meet the threshold to warrant a formal probe under the Prevention of Corruption Act. It held that:
None of the complaints presented credible or concrete evidence.
The allegations leaned heavily on the discredited Hindenburg Research report, which has already faced scrutiny from the Supreme Court.
The claims failed to demonstrate any quid pro quo or undue advantage.
The Lokpal said the entire episode appeared to be a politically driven attempt to sensationalize and trivialize the anti-corruption platform.
Five Key Allegations Examined—and Dismissed
The Lokpal examined five core charges:
Undisclosed investments in offshore funds linked to the Adani Group.
Quid pro quo via consultancy firms allegedly controlled by Buch.
Rental income from Wockhardt-related firms under SEBI probe.
Sale of ESOPs from ICICI Bank during regulatory scrutiny.
Pretence of recusal in cases involving Mahindra & Mahindra and Blackstone, while allegedly influencing SEBI decisions.
The Lokpal said none of these charges held merit, with several already settled by the Supreme Court. It was particularly critical of attempts to revisit issues the court had already ruled upon.
Affidavit and Proceedings: Buch Defended Herself with Official Records
In response to a notice issued on November 8, 2024, Buch submitted a 31-page affidavit on December 7, denying all allegations. She described the complaints as “politically motivated” and supported her defence with contemporaneous SEBI records, which the Lokpal accepted as credible and uncontested.
The Lokpal noted that:
The investments in the fund were redeemed long before SEBI began probing the Adani Group.
The consultancy firms were established after Buch’s ICICI Bank retirement and did not link to her SEBI role.
The ESOP encashment was lawful and standard practice, not linked to any favourable treatment of ICICI.
Hindenburg Report Discredited
While the initial spark for the complaints came from the Hindenburg Research report dated August 10, 2024, the Lokpal stressed that this document could not be used as the sole basis for corruption investigations. The report, authored by a known short seller, was deemed strategically motivated and already found to lack credibility by the Supreme Court.
Lokpal noted that attempts to build a fresh case independent of the Hindenburg report failed to meet legal standards and bordered on frivolity.
No Case for Further Action
In conclusion, the Lokpal categorically stated:
“Even with a liberal approach, none of the ingredients of Section 13 (of the PC Act) would be attracted. No credible material has been placed before us to show undue advantage to any party owing to Buch’s decisions or actions.”
Closure of a High-Profile Controversy
Madhabi Puri Buch, who served as SEBI chairperson from March 2022 to February 2025, had become the focus of a politically and financially sensitive storm due to the Adani-Hindenburg saga. With this clean chit, the Lokpal has closed the chapter on these allegations, affirming that no probe or further action is necessary.
Meanwhile, Hindenburg Research officially shut down in January 2025, just months after its report triggered waves across global financial and regulatory circles.
