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Informist, Tuesday, Sep 10, 2024

 

NEW DELHI – The Congress today alleged that Securities and Exchange Board of India Chairperson Madhabi Puri Buch "wilfully lied” that her consultancy services company Agora Advisory went dormant after she became a member of the regulatory body in 2017. The Congress alleged that not only was the company running even after Buch joined the SEBI, it also received a fee of 29.5 mln rupees over 2016-17 (Apr-Mar) and 2019-20 to 2023-24. Buch joined the SEBI as a wholetime member in 2017 and was elevated to the chairperson position in February 2022.

 

The Congress alleged that Mahindra and Mahindra Ltd, Dr Reddy's Ltd, Pidilite Industries, ICICI Bank, Sembcorp and Visu Leasing & Finance were among the companies that availed consultancy service from Agora Advisory. The company received 25.9 mln rupees from Mahindra & Mahindra Group alone, accounting for 88% of the total money received by the company. Congress also alleged that Buch's husband Dhaval Buch received 47.8 mln rupees as income from Mahindra & Mahindra group in his personal capacity. The SEBI had settled five cases against Mahindra & Mahindra group during this period, Congress said.

 

The Congress said that Agora Advisory, incorporated in May 2013, was a private entity and belonged to Madhabi Buch and her husband. The SEBI chief held 99% shareholding in the company, the Congress said.

"Any income that Ms Madhabi Buch’s ‘Agora Advisory Private Limited’ received from them amounts to conflict of interest and violates Section 5 of SEBI’s Code on Conflict of Interest for Members of the Board (2008)," the Congress said.

 

The Congress has launched a series of exposes against Buch ever since US-based short-seller Hindenburg Research accused her of egregious conflict of interest in her capacity as SEBI member and chairperson since 2017 in connection with her role in an investigation into the Adani Group.

 

Addressing media, Congress Media and Publicity Department Chairman Pawan Khera said that following the Hindenburg Research’s allegation that SEBI chief held 99% shares in Agora Advisory, Buch claimed that the company “became immediately dormant on her appointment with SEBI.”

 

“However, the reality is she (Buch) still owns 99% stake in the Indian entity which has been actively providing advisory/consultancy services till date,” Khera said.

 

"This isn't just a case of wilful concealment; it's a case of wilful lying. In my last press conference, I had mentioned that it is not merely a conflict of interest, it is a case of corruption. Today's revelations will prove that it is not just corruption - it is a criminal conspiracy, absolutely brazen and shameless in its execution," Khera said.

 

Hindenburg had alleged that SEBI’s unwillingness to take meaningful action against suspect shareholders in the Adani Group stemmed from Buch’s complicity in using the same funds used by Vinod Adani, brother of Gautam Adani.

 

Earlier, the Congress alleged that Buch was holding an office of profit with ICICI Bank even after assuming office as whole-time member at the regulator in 2017 and received 168 mln rupees from the bank and associate companies. The Congress has demanded that Buch step aside to facilitate an impartial inquiry into all the charges of conflict of interest against her.  End

 

Reported by Kuldeep Singh

Edited by Akul Nishant Akhoury

 

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