'Politically motivated': Lokpal clears former Sebi chief Madhabi Puri Buch over Hindenburg allegations

In a major relief for former Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch, the anti-corruption ombudsman Lokpal has disposed of complaints, which alleged impropriety, quid pro quo, and conflict of interest by her based on the allegations levelled in the Hindenburg report. The Lokpal's findings stated that these allegations were based on "presumptions and assumptions" and were "politically motivated".

The complaints were filed against Buch following a second report by the US-based short seller Hindenburg Research on August 10, 2024, which alleged a "quid pro quo" involving the former Sebi chairperson. Hindenburg also claimed Buch and her husband, Dhaval Buch, had stakes in "obscure offshore funds" linked to the Adani group. Trinamool Member of Parliament Mahua Moitra and two others had lodged these complaints.

Following these allegations, Buch issued a statement refuting these claims and labelling them as "character assassination." The Adani group also dismissed the Hindenburg allegations, calling them malicious and a manipulation of public information.

The 116-page Lokpal order "concluded 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 therefore...these complaints are disposed of."

According to the Lokpal, these complaints were primarily based on a report by a known short seller trader, whose focus was to expose or corner Adani Group. The order, issued by a six-member bench headed by Lokpal Chairperson Justice A. M. Khanwilkar, stated that the complainant(s), being aware of this, advisedly attempted to articulate allegations, independent of the said report. However, their analysis showed they were "untenable, unsubstantiated, and bordering on frivolity."

Regarding the Adani group, which was not a direct party in these complaints, the Lokpal stated: “The effectiveness of the investigations and action taken by Sebi against the Adani Group of companies has commended to the Supreme Court. That cannot be reopened directly or indirectly…”

The Lokpal deemed the Hindenburg Report "unreliable", stating that the complaints "were essentially founded on the Hindenburg Report," which by itself cannot "be made the sole basis to escalate action…”

Notably, Hindenburg Research's founder announced the closure of its operations in January 2025.

The Lokpal further stated that the complainants' only apparent motive was to "sensationalise" or "politicise" the matter, and that they had inevitably trivialised the process before the Lokpal. 

According to the news agency PTI, the Lokpal had decided on December 19 of the previous year to grant both Buch and the complainants an opportunity for an oral hearing to clarify their positions presented in the complaints or the affidavit.