Lokpal gives clean chit to former SEBI chief Madhabi Puri Buch; no material to order investigation, it says

Lokpal disposes of complaints against Madhabi Puri Buch

In a major relief to former SEBI chairperson Madhabi Puri Buch, Lokpal has disposed of complaints against her in the Hindenburg matter. The anti-corruption ombudsman has further said that there is no material evidence to order an investigation against Buch.

"... We have concluded that the allegations in the Complaint(s) are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences in Part III of the Act of 1988, so as to direct and investigation therefor... accordingly, these complaints are disposed of," stated the order passed by Lokpal.

"The Complainant(s) being conscious of this position advisedly attempted to articulate allegations independent of the stated report but the analysis of the allegations by us, ended with a finding that the same are untenable, unsubstantiated and bordering on frivolity,” added the order. The order was issued on May 28.

While deciding on the matter, the Lokpal examined five main allegations made against Buch.

1. Buch and her husband Dhaval Buch invested substantial amount in a fund linked to investments in Adani Group.
2. Quid pro quo in the garb of consultancy services fees from entities like M&M and Blackstone Inc.
3. Quid pro quo from Wockhardt in the garb of rental income
4. Undue advantage by selling ICICI Bank ESOPs over a period of five years between 2017 and 2024
5. Pretence of recusal from matters related to M&M and Blackstone Inc.

"The Complainant(s) by making such unverified and flimsy or fragile allegations, only to sensationalize or so to say politicize the matter, has inevitably trivialised the process before the Lokpal. It is nothing short of vexatious proceedings actionable under Section 46 of the Act of 2013. We say no more," stated the order.

The anti-corruption ombudsman further highlighted the fact that the complainants did not submit any credible evidence in the matter while attempting to make the authority do a "roving inquiry".

"... what the Complainant(s) are inviting us to do is to conduct a roving inquiry into the allegations which are unfounded, speculative and bordering on frivolity," stated the order.