Lokpal Clears Former SEBI Chief Madhabi Buch of Graft Allegations Linked to Hindenburg Report
The Lokpal of India on Wednesday gave a clean chit to former SEBI Chairperson Madhabi Puri Buch in connection with a series of serious corruption allegations made against her, including claims based on the controversial Hindenburg Research report.
The anti-corruption ombudsman dismissed the allegations as “untenable, unsubstantiated, and bordering on frivolity,” effectively closing the case that had drawn national attention and political sparring over alleged misconduct in India’s top market regulator.
The complaints, many of which were echoed by the opposition Congress party and amplified by whistleblower documents cited by US short-seller Hindenburg Research in August 2024, accused Buch of conflict of interest and financial impropriety during her SEBI tenure.
Among the most high-profile claims was that Buch and her husband had indirect links to offshore entities allegedly used in the “Adani money siphoning scandal.” Hindenburg and Congress suggested that she may have favoured certain market players, including global investment firm Blackstone, due to personal ties.
Congress had also claimed that Buch’s promotion of Real Estate Investment Trusts (REITs) in the Indian market disproportionately benefited Blackstone, where her husband had prior associations.
Another charge was related to her past income from ICICI Bank. Allegations surfaced that Buch had failed to properly disclose this income during her SEBI tenure. However, the government confirmed that all dues were legally cleared and that she only received retirement benefits, not salaries or ESOPs.
Apart from financial allegations, internal letters from SEBI staff had accused Buch of fostering a toxic work culture. These complaints were sent to the Finance Ministry, flagging aggressive behaviour and poor staff management.
Government sources indicated that while some concerns were valid, the broader discontent may have been a backlash to the sweeping reforms Buch introduced at SEBI aimed at increasing transparency and accountability.
Following intervention, SEBI’s leadership was advised to adopt a more sensitive approach towards employee management, effectively closing this chapter as well.
After a comprehensive review of submitted documents, whistleblower reports, and government findings, the Lokpal concluded that the evidence failed to meet the threshold for launching an investigation. The decision not only exonerates Buch but also strengthens her legacy as a reformist market regulator.
The clean chit also comes as a relief for the government, which had been facing pressure from opposition parties to probe the regulatory ecosystem’s links to corporate interests.
Madhabi Puri Buch served as the first woman chairperson of SEBI and was known for introducing digital reforms and tighter compliance mechanisms during her term. Her leadership came under scrutiny after Hindenburg’s explosive allegations on the Adani Group in 2023, which prompted closer examination of India’s regulatory bodies.
