Hindenburg Report Alone Not Sufficient For Inquiry Against SEBI Chief Buch, Says former Supreme Court Judge Justice AM Khanwilkar (Image: Supreme Court of India)

The Lokpal, India’s anti-corruption body headed by former Supreme Court Judge Justice AM , has put on hold two complaints filed against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch on Saturday. The complaints alleged quid pro quo against Madhabi Buch based on the Hindenburg Research report, one of which was filed by Trinamool Congress (TMC) MP Mahua Moitra. Lokpal stated that they lacked persuasive evidence and Moitra’s complaint was primarily noted on the Hindenburg report and did not provide sufficient grounds to take firm action.

Lokpal headed by former SC Judge Khanwilkar questions the credibility of Hindenburg report on pleas seeking investigation against SEBI Chairperson Madhabi Buch. pic.twitter.com/HRcA5trza3

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Khanwilkar also said that the second complaint was found wanting with the complainant merely reproducing the Hindenburg report’s narrative without verifying its contents or collating credible material. The Lokpal expressed concerns about relying solely on the Hindenburg report and the complainants’ failure to verify its contents. Furthermore, the Lokpal criticised Mahua Moitra for making her complaint public, despite rules protecting identities during inquiries. The Lokpal directed the complainants to provide additional information including verification of the Hindenburg Report’s authenticity and credibility.

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The complainants were also asked to explain how the alleged acts would fall under the Prevention of Corruption Act and they must consider the Supreme Court’s judgment endorsing SEBI‘s investigation against the Adani group and await the outcome of the pending application filed in the Supreme Court based on the latest Hindenburg report. The Supreme Court had earlier expressed concerns about Hindenburg Research’s conduct and directed Union authorities to inquire into their short-selling activities. SEBI has initiated 24 inquiries into the Adani group with two cases pending. The Lokpal awaits the outcome of these investigations and the Supreme Court’s decision on the pending application.

As per Lokpal, the matter has been posted to October 17 and the complainants must file affidavits providing the required information. The Lokpal will review the additional evidence before deciding on further action the court said that this decision highlights the need for thorough verification and evidence-based investigations. The Hindenburg Research report published on August 8 alleged Buch had investments in offshore funds linked to the Adani group raising concerns about potential conflicts of interest. Later complaints were directed to the Lokpal seeking further investigation on the matter by Mahua Moitra and others.

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