Criminal lawyer Jai Anant Dehadrai in a social media has punched holes in Hindenburg Research's latest report alleging SEBI Chairperson Madhabi Buch and husband's connection with the offshore fund that linked to flow of foreign money into Adani Group.
Hindenburg Research's latest report has cited whistle-blower documents to allege that chairperson of SEBI, Madhabi Buch, and her husband had stakes in the 'obscure offshore funds' which were used in channel money into Adani Group.
Jai Anant Dehadrai's first argument is that the report has attempted to establish financial wrongdoing, or bribery, only by virtue of owning a stake that current SEBI Chairperson and her husband, Dhaval Buch held in the same offshore fund. "There is no evidence anywhere in the Report to back the claim that the SEBI Chairperson took any bribes. Routine investment instruments have been sensationalised in the Report to create an impression of ill-gotten and opaque wealth," Dehadrai wrote.
The report cites a whistle-blower document which claims Madhabi Puri Buch and husband Dhaval Buch opened their account with the offshore fund, IPE Plus, in June 2015 in Singapore, nearly two years before she was appointed as the chairperson of capital market regulator.
The IPE Plus Fund is a small offshore Mauritius fund set up by an a Director of Adani Group through India Infoline (IIFL).
Dehadrai's second argument against the allegations state that their is no evidence in the report to link a favour to the Adani Group. "The Report tries to spin the illusion that the mere existence of an offshore entity implies that some criminal activity has taken place. Without any evidence linking a decision or favour to the alleged beneficiary - the Adani Group - the Report clumsily recycles its own earlier claims which were debunked by the Supreme Court," Dehadrai added.
Read more on the allegations levelled against SEBI chair Madhabi Puri Buch in latest Hindenburg report.
He is of the view that the allegations in the latest report by Hindenburg Research do not stand the test of legal scrutiny, and no court would take cognisance of this. "No criminal court anywhere in the world would take cognisance of this “material” as no criminality is made out," Dehadrai added.
Lawyer Dehadrai goes on to blame a 'cabal operating in India and abroad' that is attempting to destabilise Indian markets and 'ultimately overthrow Prime Minister Modi'.
Hindenburg Research's report has alleged 'complicity' by Madhabi Puri as the reason Sebi has been unwilling to act against Adani Group. “We suspect SEBI’s unwillingness to take meaningful action against suspect offshore shareholders in the Adani Group may stem from Chairperson Madhabi Buch’s complicity in using the exact same funds used by Vinod Adani, brother of Gautam Adani.”
In a joint statement, Madhabi Puri Buch and her husband Dhaval Buch have denied the allegations levelled by Hindenburg Research that the SEBI chairperson had stake in the entities used in Adani scandal.
The links to capital market regulator have evoked strong reactions from leaders of political parties too, with Congress leader Jairam Ramesh calling the stake held by Madhabi Buch and her husband as 'shocking', demanding a JPC to investigate the issue.
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