Lokpal Clears Ex-SEBI Chief Madhabi Puri Buch of Hindenburg-Based Allegations, Cites Lack of Verifiable Evidence

In a major development, the anti-corruption ombudsman Lokpal has dismissed all complaints filed against former SEBI chairperson Madhabi Puri Buch, concluding that the allegations lacked verifiable substance and were based on speculative claims. The decision came from a six-member bench led by Lokpal Chairperson Justice A.M. Khanwilkar, which found the accusations to be unsubstantiated and rooted in presumptions rather than facts.

The complaints, including one filed by Trinamool Congress MP Mahua Moitra, had alleged impropriety and conflict of interest against Buch, citing a controversial Hindenburg Research report. The report, published on August 10, 2024, claimed that Buch and her husband were linked to offshore funds involved in a purported financial scandal connected to the Adani Group. However, these claims were denied by Buch and labeled as an attempt to undermine her credibility and tarnish the reputation of the capital markets regulator.

According to the Lokpal, the core of the complaints rested heavily on the Hindenburg report, authored by a known short seller with a history of targeting major conglomerates like the Adani Group. The bench emphasized that relying solely on such a report, without any supporting documentary proof, does not meet the threshold for initiating an investigation under the Prevention of Corruption Act, 1988.

The order clarified that although complainants tried to build a case beyond the report, their efforts were ultimately found lacking. The allegations were characterized as “untenable, unsubstantiated, and bordering on frivolity.” As part of the proceedings, Buch submitted her response through a sworn affidavit on December 7, 2024, after being asked to respond within four weeks of the initial inquiry on November 8.

During a detailed hearing process that included both oral and written submissions, the Lokpal evaluated five specific allegations presented by the complainants. The sessions included extensive arguments from Buch’s legal representatives and participation from some complainants’ counsels. However, not all complainants or their legal teams appeared for the hearings.

Buch, who served as SEBI chairperson from March 2, 2022, until February 28, 2025, stood firm in her rebuttal of the charges. Her legal counsel argued that the complaints not only failed to establish a prima facie case but were also motivated attempts to malign a public servant’s image using half-baked information.

The Lokpal noted that mere assumptions or circumstantial claims, especially when stemming from a report aimed at financial disruption, do not fulfill legal standards for corruption or abuse of office. Furthermore, the Hindenburg Research firm itself ceased operations in January 2025, which also cast doubt on the sustained reliability of its publications.

In its final assessment, the Lokpal affirmed that the complaints did not warrant further investigation and disposed of the matter accordingly. This ruling not only clears Madhabi Puri Buch of serious charges but also underscores the need for concrete, evidence-backed complaints in matters involving public office and integrity.