Nation
Congress alleges SEBI chief Madhabi Buch‘s conflict of interest in consultancy ties and trading
Buch’s husband received a salary from Mahindra & Mahindra, a company with ongoing cases under SEBI‘s review, for his consultancy work
In a fresh set of allegations, Congress spokesperson Pawan Khera has accused SEBI Chairperson Madhabi Puri Buch of severe conflicts of interest and financial misconduct while in office.
A video released on Friday, 15 November 2024, showed Congress Leader of Opposition Rahul Gandhi and himself in a discussion detailing how Buch’s professional connections allegedly entangled SEBI, the regulatory body she heads, with her personal financial interests.
Khera claimed that Buch’s husband received a salary from Mahindra & Mahindra, a company with ongoing cases under SEBI's review, while his consultancy firm, Agora, allegedly provided consultancy to Mahindra at the same time.
“Mahindra & Mahindra has cases under SEBI investigation, yet they pay Buch’s husband both a salary and consultancy fees,” Khera asserted, calling it a blatant case of "conflict of interest". Notably, Buch herself holds over 90 per cent ownership in Agora.
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In the video discussion with leader of Opposition Rahul Gandhi, Khera raised concerns about what he described as growing influence and unchecked asset growth among powerful corporations, allegedly facilitated by officials in regulatory positions like SEBI.
Buch’s integrity as a regulator came under further scrutiny after Khera alleged that Agora was not “dormant,” as Buch claimed following the release of the Hindenburg report, but had in fact been accepting consultancy assignments, including one from Mahindra.
“Mahindra’s ties with Agora contradict her claim of the consultancy being dormant,” Khera said.
The allegations extend beyond Buch's ties with Agora. Khera also accused Buch of improperly engaging in trading activity, saying, “She has traded over Rs 36 crore in the last three to four years, despite being the SEBI chief.”
Additionally, Congress raised concerns about a property Buch reportedly rented to Wockhardt, a company also under SEBI investigation.
The expose marks Congress’s latest critique of SEBI, as the party questions the regulator's impartiality in investigating corporate misconduct involving influential entities. Congress has demanded a thorough inquiry, underscoring the need for accountability and transparency in institutions tasked with overseeing the financial markets.
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