Lokpal clears former SEBI Chief Madhabi Puri Buch of all corruption charges

The Lokpal of India has dismissed all three corruption complaints filed against former Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch (Respondent Public Servant/ RPS), ruling that no prima facie case exists for investigation under the Prevention of Corruption Act, 1988..In a comprehensive order dated May 28, 2025, the six-member Lokpal bench headed by Justice AM Khanwilkar concluded that the allegations were "more on presumptions and assumptions and not supported by any verifiable material.".The three complaints were filed by different complainants between August and October 2024, all targeting Buch's tenure at SEBI. The complaints were primarily based on a report by Hindenburg Research dated August 10, 2024, which made various allegations against the former SEBI chief."The complaint(s) under consideration were essentially founded on the Hindenburg Report dated 10.08.2024, by a known short seller trader whose focus was to expose or corner Adani Group of Companies," the Lokpal noted, highlighting concerns about the source material's credibility..On the ₹5 crore investment by Buch and her husband in a fund linked to an Adani Enterprises director, the Bench observed that the money had been redeemed in 2018—well before SEBI began its Adani probe in 2020. “We find that the stand taken by the RPS is fully vindicated from the contemporaneous official records… this allegation must fail,” the Lokpal said.It also dismissed claims of redacted disclosures to the Supreme Court-appointed Expert Committee, holding that this was “truly a veiled attempt to reopen and question the findings of the Supreme Court. We cannot be party to such an attempt.”The order concluded: "We hold that the allegation that the RPS intentionally provided heavily redacted documents to the Expert Committee of the Hon'ble Supreme Court is devoid of merit, truly a veiled attempt to reopen and question the findings of the Supreme Court.".Another key allegation was that Buch’s husband, Dhaval Buch, received over ₹4.78 crore as consultancy fees from Mahindra & Mahindra (M&M) Group while SEBI was handling regulatory issues related to the group.The Lokpal rejecting the claim of quid pro quo, noting that “this allegation is speculative and borders on frivolity.” “It is not unknown that such talented professionals are hand-picked and in demand for consultancy services post-retirement as well,” the Lokpal stated. Further, “the RPS had never dealt with any case pertaining to M&M Group of Companies as a Whole-Time Member or even as the Chairperson of SEBI,” the order noted.On the claim that she may have influenced other SEBI members, the Lokpal held: “This allegation, to say the least, is preposterous… If entertained, we may be doubting the integrity of even a former High Court Judge who had headed the Takeover Panel.”.The Lokpal also rejected allegations that Buch received rental income from Carol Info Services Ltd., linked to Wockhardt Ltd., during SEBI’s insider trading probe into Wockhardt.“The rental agreement with 'Carol' was executed four years before the settlement application was filed by Wockhardt… it is incredible to assume that the RPS had executed the rental agreement in anticipation,” the order said.Calling the claim “flimsy or fragile,” the Lokpal warned that such allegations had “trivialised the process before the Lokpal. It is nothing short of vexatious proceedings actionable under Section 46 of the Act of 2013.”.Rejecting complaints regarding the encashment of ESOPs from ICICI Bank by Buch after her appointment to SEBI, the Lokpal observed: “ESOP is not in the form of salary payment by ICICI Bank but a prerequisite enuring to the employees while in employment… to be cashable as per his/her discretion at a later point of time.”The order added that the stock options granted to an officer by the ICICI Bank up to 2011, can[not] be used to allege quid pro quo attributable to him/her years after superannuation in 2013 and that there is not even a tittle of evidence to suggest any wrongdoing.The complaints had also alleged that SEBI showed leniency in four proceedings involving ICICI Bank. Dismissing these, the Lokpal found that the settlement orders were passed in normal course of business by an institutional process and expert high-powered committee chaired by a judge of the High Court..It thus dismissed the plea. .One of the complainants Mahua Moitra was represented by advocate Prashant Bhushan..Buch was represented by Senior Advocate Arvind P Datar briefed by KJ John & Co led by its partners Amarjit Singh Bedi and Surekha Raman and assisted by Srisatya Mohanty.