Flat leased to a Wockhardt affiliate: Sebi chair Madhabi Puri Buch clarifies

SEBI chairperson Madhabi Puri Buch along with her husband Dhaval Buch has clarified that a property jointly owned by the couple was leased to an associate entity of Wockhardt under “normal course” and “standard market practices” and the rental income was declared and tax was also paid on the income

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SEBI chairperson Madhabi Puri Buch and husband Dhaval Buch have clarified that a property jointly owned by them was leased to an associate entity of Wockhardt under a 'normal course' and 'standard market practices', and the rental income was declared and tax paid on the income.

In a statement issued in a personal capacity on September 13, Madhabi and Dhaval said all necessary disclosures were made to the Securities and Exchange Board of India (SEBI) and SEBI chair did not deal with any files or cases related to Wockhardt, when the listed entity was under the regulatory scanner.

“There have been questions raised regarding the rental income received from a property owned by Madhabi and Dhaval. The property was leased out in the normal course. As it turned out subsequently, the lessee happened to be an associate of Wockhardt, a listed company which had come under investigation. Madhabi has not dealt with any files related to Wockhardt,” the statement issued by the couple said.

The statement further added that the rental agreement was “concluded in accordance with standard market practices” and the “rental from the same is declared and tax paid accordingly.”

Also Read: Sebi chair Madhabi Puri Buch, Dhaval Buch issue statement in personal capacity regarding Agora Advisory

“A simple internet search and analysis would show that the rental income from the property was completely in line with market rates. The assertion that the rental rates were ‘off market’ are patently false. All necessary disclosures have been made to SEBI in writing right from Madhabi's appointment as a Whole-Time Member in 2017, including details about the property’s market value and the rental income derived from it,” it added.

The latest statement comes close on the heels of the Congress spokesperson Pawan Khera alleging that Madhabi Puri Buch rented out her properties to Carol Info Services, a Wockhardt Group company, against whom the market regulator is investigating several cases including that related to insider trading.

The joint statement also said that given the all-India remit of SEBI’s responsibilities, the chairperson is usually not even aware of specific cases, as they are handled in the normal course by other designated officials.

In this context, even an allegation of conflict is not only defamatory, false and vexatious, but is clearly malicious and motivated, said the statement.

"SEBI operates under a clear and well-defined Delegation of Powers, ensuring that investigations are handled in accordance with established procedures. For investigations, various powers are vested in senior officials such as Chief General Managers, Executive Directors, or Whole-Time Members. Accordingly, no investigation files go to the Chairperson," the statement added.

“Making such baseless allegations reflects a clear disregard for the comprehensive legal framework and mechanisms that govern public institutions like SEBI and are motivated to mislead the public. Such allegations, devoid of factual support, seek to tarnish the reputation of individuals, respected corporates, as well as institutions of the country,” Madhabi and Dhaval Buch said.