The Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch and her husband Dhaval Buch have responded to the Congress Party’s accusations of corruption and conflict of interest, claiming that the allegations are “false, malicious, and motivated.” They allege that their income tax returns were illegally obtained and used to construct a misleading narrative against them. The allegations, which primarily centre around potential conflicts of interest due to Buch’s role at SEBI and her husband’s consultancy work, have sparked a fierce controversy in Indian political and financial circles.

Sebi chief denounces congress allegations as malicious

Madhabi Puri Buch, the first woman to lead SEBI, and her husband, Dhaval Buch, issued a comprehensive rebuttal to the allegations, which they described as baseless and maliciously crafted. The couple stated that all the matters highlighted in their income tax returns had been fully disclosed, and all taxes were duly paid. They alleged that the tax returns were accessed illegally, violating their right to privacy and the provisions of the Income Tax Act. They emphasised that this was a clear attempt to distort facts and mislead the public about their financial dealings.

Defending accusations of conflict of interest and corruption

The allegations against the Buchs include claims of conflict of interest due to Madhabi Puri Buch’s position as the SEBI chief and her husband’s consultancy firm, Agora Advisory. Congress claimed that Madhabi’s role in SEBI may have influenced Dhaval Buch’s consultancy engagements and income. The Buchs, however, dismissed these accusations, stating that Dhaval’s consultancy roles were based purely on his professional expertise, having served in leadership positions at Hindustan Unilever and Unilever globally for decades. His consultancy role with Mahindra & Mahindra began three years before Madhabi’s appointment at SEBI, thus negating any potential conflict of interest.

Furthermore, the Buchs clarified that none of the SEBI orders referenced by Congress pertained to Mahindra & Mahindra or any other clients of Agora Advisory. This refutation was backed by statements from the companies involved, which confirmed that Dhaval’s consultancy services were based solely on his professional qualifications and experience, without any influence from his spouse’s role at SEBI.

Addressing claims of improper income sources

The allegations also targeted Madhabi Puri Buch’s earnings from Employee Stock Options (ESOPs) granted by her former employer, ICICI Bank. Congress suggested that these stock options were mismanaged and pointed to irregularities in her pension payments. In their detailed rebuttal, the Buchs clarified that SEBI guidelines allow board members, including the chairperson, to hold and transact in ESOPs. Madhabi’s financial dealings were all transparently declared, and she had recused herself from any SEBI dealings involving companies where she had previous associations.

Similarly, on allegations related to rental income from a property leased to an associate of the pharmaceutical company Wockhardt, the Buchs emphasised that the lease was conducted under standard market terms, fully disclosed to SEBI, and was in no way connected to any SEBI investigations. They dismissed these accusations as defamatory and unfounded, asserting that they had followed all ethical guidelines.

Expert opinion: legal and ethical implications of illegally obtained documents

Experts in legal and financial circles have raised concerns about the broader implications of this controversy. The fact that Madhabi Puri Buch’s and Dhaval Buch’s tax returns were allegedly accessed illegally highlights potential ethical breaches in obtaining private financial information. Such actions not only undermine the right to privacy but could also have significant legal ramifications for those involved in obtaining and disseminating the documents.

Legal experts note that this case could serve as a precedent for how illegally obtained information is treated in the public domain, especially when it comes to high-profile individuals and government officials. A senior advocate, who spoke on condition of anonymity, pointed out, “If these allegations against the Buchs are indeed based on unlawfully obtained documents, it could prompt stronger legal safeguards around privacy and the protection of personal financial information in India.”

Future course of action and potential legal recourse

The Buchs have indicated their intention to pursue legal action against the perpetrators who accessed and misused their tax returns. They emphasised that they are confident of disproving all the allegations and reaffirmed their commitment to transparency and professionalism. “The ongoing campaign appears to be motivated by a desire to keep the public narrative focused on misleading claims rather than uncovering the truth,” they said.

The controversy has not only put a spotlight on SEBI and its governance but has also raised questions about the political motives behind the Congress Party’s allegations. Observers suggest that this episode could have lasting implications for how regulatory bodies and their leaders are perceived and how allegations of corruption and conflict of interest are handled in India.

  Agora Advisory, Congress Party, Dhaval Buch, Hindenburg Research, ICICI Bank, Income Tax Act, Indian Politics, Madhabi Puri Buch, Mahindra & Mahindra, privacy rights, SEBI, Securities and Exchange Board of India, Wockhardt