Lokpal gives clean chit to ex-SEBI chief Madhabi Puri Buch, trashes Hindenburg allegations

Lokpal dismisses corruption complaints against ex-SEBI chief Madhabi Puri Buch, calling Hindenburg-based allegations unsubstantiated and frivolous.

The anti-corruption ombudsman Lokpal on Wednesday dismissed complaints filed against former SEBI chairperson Madhabi Puri Buch, including one by Trinamool Congress MP Mahua Moitra, terming the allegations as "presumptions and assumptions" unsupported by any verifiable material.

The complaints were linked to allegations made in a Hindenburg Research report dated August 10, 2024, which claimed Buch and her husband held stakes in obscure offshore funds connected to an alleged money-siphoning scandal involving the Adani Group. The Lokpal concluded there was insufficient basis to order an investigation into the matter.

In its detailed order, a six-member bench headed by Lokpal chairperson Justice A M Khanwilkar said: "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 therefor."

Accordingly, the complaints were disposed of.

The Lokpal noted that the complaints stemmed from the Hindenburg report, which it described as being authored "by a known short seller trader whose focus was to expose or corner Adani Group of Companies". It also pointed out that attempts by complainants to present independent allegations beyond the report lacked substance.

"The complainant(s) being conscious of this position advisedly attempted to articulate allegations independent of the stated report but the analysis of the allegations by us, ended with a finding that the same are untenable, unsubstantiated and bordering on frivolity," the order stated.

Buch, who assumed office as SEBI chief on March 2, 2022, completed her tenure on February 28, 2025. Following the complaints, the Lokpal had on November 8, 2024, sought her explanation, to which she responded via a sworn affidavit on December 7, 2024. Oral hearings were held subsequently on April 9, 2025.

During the hearings, complainants cited sections 7 and 11 of the Prevention of Corruption Act, 1988, alleging Buch had taken undue advantage. However, after reviewing five key allegations raised during oral and written submissions, the Lokpal found no grounds for further action.

Buch and SEBI had earlier denied the allegations made in the Hindenburg report, accusing the short seller of attempting a "character assassination" and attacking the regulator’s credibility. The Adani Group had also termed the claims as "malicious and manipulation of selective public information".

Hindenburg Research's founder had announced the firm's closure in January 2025.