These complaints were primarily based on a report published by Hindenburg Research, which the Lokpal described as relying on “presumptions and assumptions” rather than “verifiable material”.
The anti-corruption ombudsman Lokpal has dismissed multiple complaints alleging impropriety and conflict of interest against former SEBI chairperson Madhabi Puri Buch, concluding that the accusations lacked substantiated evidence. These complaints were primarily based on a report published by Hindenburg Research, which the Lokpal described as relying on “presumptions and assumptions” rather than “verifiable material”.
In its order released on Wednesday, the Lokpal stated, “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… so as to direct an investigation therefor.”
Background of the allegations
The complaints, including one filed by TMC MP Mahua Moitra, were rooted in a report by Hindenburg Research — a US-based short-seller firm — released on August 10, 2024. The report alleged that Buch and her husband held interests in obscure offshore funds that were purportedly involved in a money-siphoning scandal linked to the Adani Group.
The Lokpal noted, “the complaints… were essentially founded on the report by a known short seller trader whose focus was to expose or corner Adani Group of Companies.”
Response to allegations
Both Buch and the Adani Group denied the allegations. While Buch described the claims as an attempt to malign the credibility of the capital markets regulator, Adani Group dismissed them as “malicious” and “manipulation of selective public information.”
Buch, who completed her tenure as SEBI chief on February 28, 2025, had submitted a detailed affidavit in response to the Lokpal’s notice. The affidavit, filed on December 7, 2024, addressed each allegation and raised preliminary legal objections.
Lokpal’s observations
The Lokpal had earlier asked Buch to respond to the complaints on November 8, 2024. In its latest order, a six-member bench headed by Lokpal Chairperson Justice A M Khanwilkar emphasized that the Hindenburg report alone could not justify initiating an investigation.
“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,” the order stated.
With these observations, the Lokpal bench formally disposed of the complaints, putting an end to the proceedings related to the matter.
(With PTI inputs)
