India’s anti-corruption ombudsman, Lokpal, has decided not to pursue a complaint filed by a Lok Sabha MP alleging impropriety and conflict of interest involving Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (SEBI). The Lokpal stated that the complaint "falls short" of establishing a prima facie case that would warrant an investigation.
In a ruling dated 20 September, the Lokpal requested the complainants to submit affidavits detailing their efforts to verify the authenticity of claims made in a report by Hindenburg Research, published on 10 August 2024. The Lokpal also instructed them to clarify the specific allegations that might constitute "an offence of corruption" under the Prevention of Corruption Act, 1988.
Hindenburg’s report accused Buch and her husband of holding stakes in offshore funds allegedly linked to the Adani Group's money siphoning scandal. Both Buch and her husband have denied these allegations, claiming that Hindenburg’s report is an attack on the credibility of the capital markets regulator and an attempt at character assassination. The Adani Group also described the report as malicious, asserting that it manipulates selective public information.
The Lokpal noted that Hindenburg claimed SEBI had demonstrated "a surprising lack of interest in Adani's alleged undisclosed web of Mauritius and offshore shell entities" since its initial report on the group 18 months ago.
Addressing the complaint from the sitting MP, the Lokpal concluded, "It falls short of persuading us to take a firm view that there exists a prima facie case as per Section 20 of the (Lokpal) Act of 2013 to proceed in the matter."
Trinamool Congress MP Mahua Moitra, who filed the complaint, expressed her disappointment and suggested that the Lokpal should forward the case to the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI) for further investigation.
The Lokpal emphasised that both complainants must provide clear details about their claims and efforts to verify the information presented by Hindenburg. The order stated, "We make it clear that the observations made hitherto in the concerned complaint...may not be construed as an expression of opinion by the Lokpal one way or the other."
The Lokpal plans to revisit the cases on 17 October 2024 for further consideration.
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