Aug 10, 2024 10:48 PM IST
Hindenburg Research alleges that Sebi Chairperson Madhabi Puri Buch and husband Dhaval Buch owned stakes in offshore Adani funds used to siphon money
US-based activist short seller Hindenburg Research LLC alleged that Sebi Chairperson Madhabi Puri Buch and her husband Dhaval Buch owned stakes in the two offshore funds used allegedly in what Hindenburg calls the “Adani money siphoning scandal,” in a new report published on August 10, 2024, which cited whistleblower documents. HT couldn’t independently verify the information contained in the report.
The report quoted a separate investigation by the Financial Times which showed that a company named Indian Infoline (“IIFL”) a publicly listed wealth management firm in India, now called 360 One, managed the GDOF – the Bermuda-based Global Opportunities Fund (“GOF”), used by two Adani associates “to amass and trade large positions in shares of the Adani Group.”
The report goes on to allege that Buch and her husband owned hidden stakes in the exact same offshore Bermuda and Mauritius funds, found in the same complex structure, used by Vinod Adani.
A declaration of funds, signed by a principal at IIFL showed that the source of the investment is “salary” and that the couple´s net worth is estimated at $10 million, according to the report.
The report also shows a letter sent by Dhaval Buch to Mauritius fund administrator Trident Trust regarding the couple’s investment in the Global Dynamic Opportunities Fund (“GDOF”) on March 22, 2017, just weeks ahead of Buch’s appointment as a Sebi whole-time member.
The letter showed Dhaval Buch requesting to “be the sole person authorised to operate the Accounts.” The report says it was for “seemingly moving the assets out of his wife’s name ahead of the politically sensitive appointment.”
