Lokpal to complainants: Hindenburg report not enough for probe against SEBI head, get more material

India's anti-corruption authority, Lokpal of India, has questioned the credibility of Hindenburg Report, based on which two complaints were filed with the authority against the Sebi Chairperson, Madhabi Puri-Buch. 

Lokpal has stated that the complaints filed by two individuals, including Lok Sabha MP Mahua Moitra, do not provide sufficient grounds for a preliminary inquiry based solely on the Hindenburg report.

The Lokpal has requested both complainants to submit affidavits with additional facts, with the matter set to be reconsidered on October 17, 2024.

It seeks an explanation of how the claims against the SEBI Chairperson fall under the Prevention of Corruption Act, 1988, and asks for the specific provisions of the Act that should be applied to these allegations.

Moitra filed her complaint alleging misconduct and financial irregularities against Buch. She has accused the SEBI Chief of improper conduct and engaging in quid pro quo arrangements. 

"My LokPal complaint against Ms. Puri-Buch has been filed electronically & in physical form. Lokpal must within 30 days refer it to CBI/ED for a preliminary investigation and then a full FIR enquiry. Every single entity involved needs to be summoned & every link investigated," Moitra posted on her 'X' handle.

Her complaint follows allegations from US-based Hindenburg Research, which suggested that the SEBI Chief and her husband held investments in offshore funds linked to the Adani group while SEBI was investigating complaints against the conglomerate.

In a blogpost, Hindenburg said 18 months since its damning report on Adani, "SEBI has shown a surprising lack of interest in Adani's alleged undisclosed web of Mauritius and offshore shell entities."

Citing "whistleblower documents", it said, "Madhabi Buch, the current chairperson Of SEBI, and her husband had stakes in both obscure offshore funds used in the Adani money siphoning scandal."

Responding to the allegation, Buchs said in their statement, "In the context of allegations made in the Hindenburg Report dated August 10,2024 against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report."

"The same are devoid of any truth. Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years," the statment said.