Relief for Madhabi Purti Buch, Lokpal says no grounds for investigation

In a major relief to former Sebi Chief Madhabi Puri Buch, the Lokpal has held that no grounds have been made out for directing an investigation against her, under the Prevention of Corruption Act.

The Lokpal order held that complaints had raised questions about quid pro quo and conflict of interest, based on assertions made about the Hindenburg report against Adani. Lokpal order records that the short seller’s report, alone, can’t be the basis to launch action against Buch.

Lokpal concluded that it found the allegations against Buch to be “untenable, unsubstantiated, and bordering on frivolity”.

The order further states, “We have concluded that the allegations of the complaints are more on presumptions and assumptions, and not supported by any verifiable material and do not attract the ingredients of offences in the Prevention of Corruption Act, so as to direct an investigation further.”

At the very outset, Lokpal order clarifies that it is not trying to verify the allegations made or the questions raised, but only to see if there was a cognizable offence, fit for investigations.

Among the allegations raised were her investments in a fund linked to the Adanis. Questions had also been raised about fees received from M&M and Blackstone, by Agora Advisories, a consultancy firm owned by Buch and her husband. The complainant had argued that these firms were subject to regulatory scrutiny by Sebi. Complainants had also flagged rental income from Wockhardt as kickbacks. She was also facing allegations of sale of ICICI Bank ESOPs between 2017 and 2024.