Lokpal gives clean chit to former sebi chief madhabi puri buch

Buch, who took over as the chief of the Securities and Exchange Board of India (SEBI) on March 2, 2022, demitted office on February 28, this year after the completion of her tenure.

Referring to an earlier order in this regard, the Lokpal said that the Hindenburg report by itself cannot be made the sole basis to escalate action against Buch. "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 said. The Lokpal had on November 8, last year sought Buch's "explanation" on the complaints filed by

Moitra, a Lok Sabha member, and two others. Buch, the former chairperson of capital markets regulator Securities and Exchange Board of India (SEBI), was asked to submit her response within

four weeks. Buch had filed her response by way of an affidavit sworn on December 7, 2024, raising preliminary issues as well as giving an explanation allegation-wise. The Lokpal had on

December 19 last year decided to give an opportunity of oral hearing to both Buch and the complainants to clarify their positions taken in the complaints or the affidavit. Hindenburg

Research's founder announced its closure in January this year. Meanwhile, the Lokpal took the matter for oral arguments on April 9, after further documents and

affidavits-cum-written-submissions were filed. "The advocate for the complainant in the second complaint made exhaustive oral submissions. The proxy counsel appearing for the

complainant in the third complaint opted to file written submissions. "Although the complainant in the third complaint has been represented by an advocate, neither the complainant nor

the advocate appeared to make oral submissions," the order said. Buch was represented by senior counsel who made elaborate oral submissions. "At the conclusion of the oral

arguments parties were given time to file written note/response as requested by them, for consideration of the bench," the order said. It said that at the time of oral submissions, the

complainants have mainly invoked sections 7 and 11 of the Act of Prevention of Corruption Act, 1988 on the allegation of Buch having taken undue advantage. In the order, the Lokpal noted

that five allegations have been emphasised during the oral arguments and in the written notes/submissions by the complainants, and dealt with them in detail in its order, before finally

disposing of them.