Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (Sebi), and her husband, Dhaval Buch, issued a joint statement on Friday addressing and refuting allegations made by the Congress party.
The Congress party’s claims centred on Dhaval Buch's consulting roles, the Buchs' rental income from a property leased to a Wockhardt associate, and Madhabi’s Employee Stock Options (ESOPs) from ICICI Bank.
The couple labelled the claims as false and defamatory, and provided three key clarifications to counter the accusations.
1. Dhaval Buch’s consulting work
The Congress party had questioned Dhaval Buch's consulting roles for companies such as Mahindra & Mahindra, Pidilite, Dr. Reddy’s, and Alvarez & Marsal. In response, the statement explained that his assignments were based solely on his 35 years of experience, including his tenure as Executive Director at Hindustan Unilever.
Mahindra & Mahindra, which contributed 94% of the income to Dhaval's firm Agora Advisory since 2019, confirmed that Dhaval was hired three years prior to Madhabi’s appointment as Sebi Chairperson, based on his expertise in supply chain management. The company dismissed any suggestion of a connection between Dhaval’s role and Sebi orders.
Pidilite and Dr. Reddy’s also clarified that their engagement with Dhaval had no link to Sebi investigations, and his consulting work was independent of his wife’s position at Sebi.
Additionally, the statement addressed the false claim that Agora Advisory had dealings with Sembcorp and Visu Leasing during Madhabi's time as a Whole Time Member (WTM) at Sebi. It clarified that these contracts had been completed before her tenure, and payments from ICICI Bank to Agora were solely interest on deposits.
The couple asserted that all consulting income was properly declared and separated through Agora Advisory, established after Dhaval’s retirement. They condemned the allegations as defamatory, not only to themselves but also to the companies involved.
2. Property leased to Wockhardt associate
The second clarification addressed claims regarding the Buchs' rental income from a property leased to an associate of Wockhardt, a pharmaceutical company under Sebi investigation. Critics suggested a potential conflict of interest due to Madhabi’s role.
The statement clarified that Madhabi was not involved in any Wockhardt-related investigations, as Sebi’s Delegation of Powers system ensures that investigation files do not reach the Chairperson. The rental agreement, they added, followed standard market practices, with the income fully declared and taxed.
The Buchs highlighted that the property and its income were fully disclosed when Madhabi joined Sebi as a Whole Time Member in 2017, dismissing the allegations as malicious and politically motivated.
3. Madhabi’s Employee Stock Options (ESOPs) from ICICI Bank
The third clarification pertained to Madhabi’s ESOPs from ICICI Bank, where she had previously worked. Congress had questioned the legitimacy of her ESOPs and pension payments, alleging irregularities.
The statement explained that Madhabi retired from ICICI Bank, and under the bank’s rules, retired employees could exercise vested stock options over a ten-year period, countering claims that the options had to be exercised within three months. This three-month limit only applied to employees who resigned.
The Buchs also clarified that the variation in Madhabi’s pension payments was due to the timing of her exercising ESOPs, which were linked to market prices at the time. The couple confirmed that all necessary disclosures and recusals regarding ICICI-related files were properly maintained during Madhabi’s Sebi tenure.
The Buchs concluded by affirming their professional integrity and transparency, accusing the Congress party of twisting facts to build a false narrative. They reserved the right to take legal action against these allegations.
Follow us
