SEBI Chief Madhabi Buch, Husband Deny Allegations; Issue 3 Key Clarifications
Following a series of allegations made against Securities and Exchange Board of India (SEBI) Madhabi Puri Buch and husband Dhaval Buch, the two issued a joint statement on Friday, refuting impropriety and conflict of interest claims made by the Congress party.
Calling the allegations “incorrect, motivated, and defamatory,” the statement outlined three key clarifications: Mr. Buch’s consulting assignments, their rental income from a property leased to Wockhardt, and Ms. Buch’s Employee Stock Options (ESOPs) from ICICI Bank.
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1. Dhaval Buch’s Consulting Assignments
The statement highlighted the consulting assignments of Dhaval Buch with firms like Dr. Reddy, Pidilite, Alvarez & Marsal, and Mahindra & Mahindra. Describing the contracts as purely merit-based, the statement highlighted that they took place before Ms. Buch became the SEBI chairperson.
“It is unfortunate that questions have been raised regarding the consulting assignments of Dhaval Buch and the firms Agora Advisory in India and Agora Partners in Singapore. There seems to be an assumption that when a spouse of a senior government official is appointed as an advisor, it must be attributed to factors beyond professional merit. Such assumptions overlook the strength of qualifications and expertise and reach conclusions that are most unfortunate,” read the statement.
They also emphasised that Mr. Buch, with an experience of 35 years, served as the Executive Director at Hindustan Unilever. He was also hired by Mahindra & Mahindra, three years prior to Ms. Buch assuming the role of SEBI chairperson, based on his expertise in the field. The firm has contributed 94 percent of Agora Advisory’s income since 2019.
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Mahindra & Mahindra, along with Pidilite and Dr. Reddy’s, confirmed that Dhaval’s consulting work had no connection to any SEBI investigations but purely on his expertise, the statement read.
Furthermore, the statement noted that the assignments, where Agora Advisory allegedly offered services to Sembcorp and Visu Leasing while Ms. Buch served as a Whole Time Member (WTM) at SEBI, were finalised in 2016-17 before the latter joined SEBI.
They also stated that all consulting income was declared and separated transparently through Agora Advisory, which was established by Mr. Buch following his retirement.
2. The Buch’s Rental Income
Addressing the couple’s rental income from a property leased to an associate of pharmaceutical company Wockhardt, the statement clarified that Ms. Buch had no involvement in any investigations associated with Wockhardt. Operating under the Delegation of Powers system, the statement emphasised that investigation files never made their way to the SEBI Chairperson.
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The rental agreement followed standard market practices with income declared and taxes paid, they stated. Full disclosures of the same were made when Ms. Buch was appointed as a WTM in 2017, they stated.
3. Madhabi Buch’s ESOPs And ICICI Bank
Regarding allegations raised by Congress over ICICI Bank and Ms. Buch’s ESOPs, the statement pointed out that the bank’s rules, which allowed retired employees, Ms. Buch in this case, to exercise vested options over a decade. The three-month rule applied only to employees who resigned, as per the couple.
The Congress had highlighted irregularities in her retiral payouts. The Buchs highlighted that these were part of the Annuity Scheme from ICICI Prudential, and the irregularities were due to using the ESOPs at different stages depending on the market price prevalent at the time.
Dismissing the grand old party’s allegations of Ms. Buch being involved in cases concerning ICICI Bank when she served as the chairperson, the statement clarified that all required disclosures were made.
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Finally, the Buchs slammed the allegations and the “new falsehoods” raised against them and stated that the sole intention is to “keep distorting facts, to keep making false allegations again and again to build a false narrative. Clearly, arriving at the truth is not the objective.”
