Synopsis
The latest allegations from US short seller Hindenburg Research against SEBI Chairperson Madhabi Buch and her husband have sparked sharp reactions from opposition parties. Congress leaders, including Pawan Khera and Shashi Tharoor, have called for a Joint Parliamentary Committee (JPC) to investigate the claims, asserting that only a JPC can uncover the truth behind the accusations. The Adani Group has dismissed the allegations as malicious and manipulative, while Buch and her husband have labeled the claims as character assassination. The controversy comes amid ongoing scrutiny of the Adani Group’s financial practices and the SEBI’s regulatory role.
ANIThe allegations of the US Short seller Hindenburg against SEBI Chairperson Madhabi Buch and her husband have drawn sharp political reactions from the opposition parties with the opposition demanding a Joint Parliamentary Committee (JPC) on the issue.
Congress leader Pawan Khera on Sunday said that nothing will be found through any other measures unless a Joint Parliamentary Committee.
Congress leader Pawan Khera said, “The Government of India had paid no attention towards any special investigation. Hindenburg came out with another report and all the doings of SEBI Chief Madhabi Buch and her husband Dhaval Buch is before everyone now. Their investments in offshore companies are before everyone. These are those companies in which Gautam Adani’s brother Vinod Adhas also made investments. The question is when Madhabi Buch was appointed as the SEBI Chairman, did the Government of India not know about this? If they did not know, then it was a major failure. If they knew about it, then the PM of India himself is a part of this conspiracy…We are not asking anything from SEBI Chief or Gautam Adani, we ask the Prime Minister of the country – did your government, which considers itself very alert, not know about it? Nothing will be found through anything less than Joint Parliamentary Committee (JPC). There should be JPC and only through that all answers will come out.”
Congress MP Shashi Tharoor demanded either a satisfactory explanation from the accused or an investigation against it.
Congress MP Shashi Tharoor told ANI, “These are serious matters. I am not aware of the details…Any such allegations must be answered satisfactorily or investigated. Can’t leave these things hanging up there and casting a cloud on the integrity of our system. It is important that either a satisfactory explanation is given by the people accused or there should be an investigation.”
Meanwhile, hours, after the US-based short seller shot off fresh allegations against Adani Group, the spokesperson of the conglomerate, said, “The latest allegations by Hindenburg Research are malicious, mischievous, and manipulative selections of publicly available information to arrive at pre-determined conclusions for “personal profiteering with wanton disregard for facts and the law.”
Earlier in the day, shortly after US-based short seller Hindenburg Research on August 10 alleged that SEBI Chairperson Madhabi Buch and her husband had stakes in “both the obscure offshore entities used in the Adani money siphoning scandal,” the SEBI Chairperson and her husband issued a joint statement rejecting the allegations.
Madhabi Puri Buch and her husband accused Hindenburg Research, against whom SEBI has taken enforcement action, of character assassination.
In the joint statement released to the media, they said, “Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them. It is unfortunate that Hindenburg Research against whom SEBI has taken an Enforcement action and issued a show cause notice has chosen to attempt character assassination in response to the same.”
Earlier on Saturday, US short seller Hindenburg had alleged, “We had previously noted Adani’s total confidence in continuing to operate without the risk of serious regulatory intervention, suggesting that this may be explained through Adani’s relationship with SEBI Chairperson, Madhabi Buch.”
“What we hadn’t realized: the current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani,” the report by the US hedge firm said.
Hindenburg Research said it has made the new allegations based on documents provided by a whistleblower and investigations carried out by other entities.
In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company’s stock price. The group at the time had rubbished these claims.
The Hindenburg report alleged stock manipulation and fraud by the conglomerate. The case is related to the allegations (part of a report by Hindenburg Research) that Adani had inflated its share prices. After these allegations were published, there was a sharp fall in the shares of various Adani group companies’ stocks.
In January 2024, the Supreme Court refused to transfer the probe into the allegations of stock price manipulation by the Adani group to an SIT and had directed market regulator SEBI to complete its probe into two pending cases within three months.
Earlier this year the SC also dismissed a plea seeking to review the verdict that had sought investigation by the market watchdog SEBI in the Adani-Hindenburg case.
