Madhabi’s firm gives consultancy to many companies and they get SEBI protection
News Bureau September 10.2024
Another case of alleged corruption of SEBI chief Madhabi Puri Buch has come to light on Tuesday. The Congress party has alleged that Mahindra & Mahindra, ICICI, Dr. Reddy’s, Pidilite, Sembcorp and Visu Leasing & Finance have availed consultancy services from Agora Advisory. Madhabi Puri Buch was a whole-time director of the Securities and Exchange Board of India (SEBI) at that time. The Mahindra Group denied the allegations but did not provide any evidence.
AICC media and publicity department chairman, Pawan Khera said that availing Agora’s services when Buch was a whole-time director of SEBI was a “conflict of interest” and violated Section 5 of the SEBI Board Code 2008 on conflict of interest of members.
Pawan Khera told with evidence that Buch held 99 percent shares of the company, as Hindenburg Research had also initially revealed in its latest report. But then Buch strongly denied it, saying that when he took his appointment in SEBI, the consulting companies established by him immediately became inactive in Singapore and India. Congress alleged with documents that Buch still owns 99 percent of Agora Company which is actively providing advisory and consulting services.
He said- “From 2016-17, 2019-2020 to 2023-24, as a full-time member of SEBI and later as its chairman, Madhabi Puri Buch received a total of Rs 2.95 crore through Agora Advisory Private Limited. That is, even when she is SEBI Chairperson, she is still getting money from her firm. In its latest allegations, the Congress said that out of the Rs 2.95 crore received by Agora for consultancy, Rs 2.59 crore came from Mahindra & Mahindra Group, which is 88 per cent. Obviously, Mahindra Group must have obtained protection from SEBI in return for this. Although Mahindra denied the allegations, it did not say whether its group had taken consultancy from Agora or not.
Congress said that Madhabi Puri Buch’s husband Dhawal Buch also received Rs 4.78 crore as income in personal capacity from Mahindra & Mahindra, which is more than Rs 2.95 crore received by Agora. It was told that Dhawal Buch’s income was received when Madhabi Puri Buch was a full-time director of SEBI, and was deciding Mahindra’s cases in SEBI. Mahindra Group denied the allegations and admitted that Dhawal Buch had retired from Unilever. Being an expert, he was appointed in 2019. Then Mahindra has told a long story about where he kept Dhawal Buch and what work he took. But Mahindra could not deny the allegation that Dhawal Buch is the husband of SEBI Chief. His company Agora has received crores of rupees in the name of consultancy.
Congress questions PM Modi Congress also questioned PM Modi on this issue on Tuesday. It is important to tell that Modi has been claiming that he will eradicate corruption from its roots. He neither eats himself nor will he let anyone else eat. But the way the cases related to Adani have come to light, PM Modi’s claims have lost their gravity. The party questioned whether Prime Minister Narendra Modi knew that Buch owns a 99 per cent stake in Agora, and is receiving “significant fees” from listed entities. It raised questions on the type of services Agora provides and whether these are of financial nature. The Congress asked whether the Prime Minister was aware of Madhabi Puri Buch’s links with a controversial entity, and that her husband is receiving substantial income from Mahindra after his retirement.
The people of India have never found SEBI in controversy till date. But the whole controversy started when the Hindenburg Research Report came on the financial irregularities of the Adani Group. The Adani Group denied the allegations. But Hindenburg told how the Adani Group has the protection of the government institution SEBI. Not only this, SEBI chief Madhabi and her husband Dhawal Buch have invested in Adani’s companies. Hindenburg and the opposition parties of the country said that this is a direct case of conflict of interest. Later it was also revealed that Madhabi Puri Buch was brought to SEBI through lateral entry. For the first time, SEBI rules were broken. Then it also became clear how the Adani Group has direct interference in SEBI. The opposition alleges that Madhabi was appointed to SEBI by the Adani Group.