New Delhi: A day after hinting at another major revelation on India, Hindenburg Research has alleged in its latest report that Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and her husband Dhaval Buch owned stakes in offshore entities linked to Adani Group’s alleged financial misconduct.
Madhabi and Dhaval have denied the allegations levelled against them by the American short-seller firm, PTI reported.
Hindenburg cited “whistleblower documents” to claim that the alleged offshore entities were part of a network used by GautamAdani’s elder brother Vinod to “siphon money.” The report also said that SEBI’s impartiality in conducting a probe against Adani Group is “questionable” due to potential conflict of interest.
The Buchs responded by saying that the allegations are untrue and their life and finances are an ‘open book’.
“In the context of allegations made in the Hindenburg Report dated August 10, 2024 against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report,” Madhabi and Dhaval said in a statement.
“The same are devoid of any truth. Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years,” the statement added.
They added that they have no hesitation in disclosing any and all financial documents, including those relating to the period when they were “strictly private citizens”, to any and every authority that may seek them.
“Further, in the interest of complete transparency, we would be issuing a detailed statement in due course,” they stated.
Hindenburg’s report in January 2023 shook India, as it accused Gautam Adani — then the third wealthiest person in the world — of carrying out the biggest con in corporate history. Adani vehemently denied the charge.
Hindenburg’s latest report
Hindenburg said that Madhabi and Dhaval had undisclosed investments in obscure offshore funds in Bermuda and Mauritius. These are entities allegedly used by Vinod Adani to manipulate the financial markets.
The investments date back to 2015, well before Madhabi’s appointment as full-time member of SEBI in 2017 and her elevation to SEBI chairperson in March 2022.
Just weeks before Madhavi’s SEBI appointment, her husband requested the transfer of their investments into his sole control, potentially to avoid any scrutiny related to her new regulatory role, Hindenburg said.
“In the letter, Dhaval Buch requested to be the ‘sole person authorised to operate the accounts’, seemingly moving the assets out of his wife’s name ahead of the politically sensitive appointment,” the report alleged.
The investments of Buchs were reportedly funnelled through a complex, multi-layered offshore structure, raising questions about their legitimacy and purpose.
