Hindenburg Research report | Former SEBI chief Madhabi Puri Buch given clean chit by Lokpal

New Delhi: Anti-corruption ombudsman Lokpal on Wednesday declined to act on complaints alleging impropriety and conflict of interest against former SEBI chief Madhabi Puri Buch based on a Hindenburg Research report, finding the allegations as "presumptions and assumptions" not supported by any verifiable material.

A full bench of the Lokpal led by Justice A M Khanwilkar said that the complaints, including the one by TMC MP Mahua Moitra, filed last year were essentially founded on the report "by a known short seller trader whose focus was to expose or corner Adani Group of Companies".

In its report published on August 10, 2024, Hindenburg Research alleged that Buch and her husband had stakes in obscure offshore funds used in the alleged money-siphoning scandal involving the Adani Group.

They had denied the allegations saying the short-seller was attacking the capital markets regulator's credibility and attempting a character assassination.

The Adani Group had also termed the allegations as malicious and manipulation of selective public information.

In its Wednesday order, the Lokpal "concluded that 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".

Accordingly, these complaints are disposed of, the order said.

Buch, who took over as the chief of the Securities and Exchange Board of India (SEBI) on March 2, 2022, demitted office on February 28, this year after the completion of her tenure.

Referring to an earlier order in this regard, the Lokpal said that the Hindenburg report by itself cannot be made the sole basis to escalate action against Buch.

"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 said.

The Lokpal had on November 8, last year sought Buch's "explanation" on the complaints filed by Moitra, a Lok Sabha member, and two others.

Buch, the former chairperson of capital markets regulator Securities and Exchange Board of India (SEBI), was asked to submit her response within four weeks.

Buch had filed her response by way of an affidavit sworn on December 7, 2024, raising preliminary issues as well as giving an explanation allegation-wise.

The Lokpal had on December 19 last year decided to give an opportunity of oral hearing to both Buch and the complainants to clarify their positions taken in the complaints or the affidavit.

Hindenburg Research's founder announced its closure in January this year.