Recent claims against SEBI Chairperson Madhabi Puri Buch have intensified scrutiny, with both Congress and Hindenburg Research leveling serious allegations that have put her under the spotlight. Here’s a breakdown of the latest developments and the ongoing controversy.
Hindenburg’s Allegations
Madhabi Puri Buch was recently accused of grave conflicts of interest by Hindenburg Research. As a full-time SEBI member, Buch was allegedly connected to Agora Advisory, a consultancy business that she reportedly owns 99 percent of, according to Hindenburg. The firm allegedly provided services to prominent listed entities including Mahindra & Mahindra, ICICI Bank, Dr. Reddy’s, and Pidilite during her tenure at SEBI. Hindenburg claims that Buch has maintained silence for weeks despite these accusations, suggesting that her lack of response could be worsening the situation.
Congress Joins the Fray
The Congress party has amplified these allegations, accusing Buch of accepting payments from major companies while in office. Party spokesperson Pawan Khera alleged that Agora Advisory earned around ₹3 crore, with a significant portion coming from Mahindra & Mahindra. Khera condemned Buch’s silence and accused her of “willful lying” and corruption, arguing that the situation points to a broader criminal conspiracy.
In response to these claims, Mahindra Group dismissed the allegations as false and misleading. They clarified that payments to Dhaval Buch, Madhabi Buch’s husband, were related to his expertise in supply chain management and were made well before Madhabi Buch’s appointment at SEBI.
Public Accounts Committee (PAC) Inquiry
Amidst the swirling allegations, the Parliamentary Public Accounts Committee (PAC) has been preparing to investigate the matter. The PAC, led by Congress leader KC Venugopal, is set to review the functioning of SEBI and the claims against Buch. However, the inquiry has faced opposition from some MPs, particularly regarding procedural issues(Hindenburg). The debate over whether the PAC can summon Buch or audit SEBI’s operations continues.
Buch’s Silence and Its Implications
Madhabi Puri Buch’s silence on the mounting allegations has been a point of contention. Critics argue that her lack of communication only fuels the controversy and undermines SEBI’s credibility. Some believe that her responses to the allegations could potentially complicate the situation further. Industrialist Harsh Goenka expressed support for Buch, suggesting that her perceived lack of diplomacy may have contributed to the current predicament.
Support from Peers
Despite the criticism, Buch has received backing from various quarters. A group of her IIM Ahmedabad classmates have defended her, criticizing the ongoing public attacks as unjust and emphasizing the need for thorough fact-checking before making reputational judgments. They argue that the efforts to clear her name are underway and that the current narrative might be premature.
As the situation develops, the focus remains on whether the PAC inquiry will address the concerns raised and how Buch will respond to the ongoing allegations. Her silence continues to be a focal point, with significant implications for both her personal reputation and the credibility of SEBI. The coming weeks may prove crucial in determining the outcome of this high-profile controversy.
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