In a significant development, former Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch has been exonerated by the Lokpal of India in the high-profile Hindenburg case. The anti-corruption ombudsman dismissed all allegations against Buch, citing a lack of verifiable evidence and calling the complaints “untenable, unsubstantiated, and bordering on frivolity”.
Background of the Case
The controversy stemmed from an August 2024 report by Hindenburg Research, a US-based short-seller, which alleged that Buch and her husband had financial interests in offshore funds linked to the Adani Group. The report suggested a conflict of interest during Buch’s tenure as SEBI chief, raising concerns about regulatory oversight.
Following the report, complaints were filed with the Lokpal, including one by Trinamool Congress MP Mahua Moitra, demanding an investigation into Buch’s financial dealings. The Lokpal sought Buch’s response in November 2024, leading to a detailed affidavit submission in December 2024.
Lokpal’s Verdict
After a thorough review, the six-member Lokpal bench, headed by Justice A.M. Khanwilkar, concluded that the allegations were based on assumptions and lacked credible evidence. The panel emphasized that the Hindenburg report alone could not justify punitive action against Buch.
The Lokpal examined five key allegations, including claims of quid pro quo related to consultancy fees and rental income from entities under SEBI investigation. However, all charges were dismissed due to insufficient proof.
Political & Market Reactions
The ruling has sparked mixed reactions in political and financial circles. While Buch’s supporters view the verdict as a vindication, critics argue that the case highlights broader concerns about regulatory transparency in India’s financial markets.
With the matter now officially closed, Buch’s clean chit from the Lokpal marks the end of a high-profile legal battle, reinforcing the importance of evidence-based investigations in corporate governance.
