Lokpal Summons SEBI Chief Buch And TMC MP Mahua Moitra For 'Oral Hearing' Over Hindenburg Allegations Against Adani Group

The anti-corruption watchdog Lokpal has summoned Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch and complainants, among them Trinamool Congress (TMC) member of Parliament (MP) Mahua Moitra, for a verbal hearing scheduled for next month.

The hearing pertains to corruption allegations under review, which suggest misconduct and conflicts of interest, as per a report by Hindenburg Research, as stated in an official directive.

On November 8, the Lokpal requested an "explanation" from Buch regarding the grievances lodged by Moitra, a Lok Sabha MP, along with two other individuals. The SEBI chairperson was given a four-week deadline to provide her response.

Upon reviewing the case, Lokpal stated, "The identified respondent public servant (RPS) has submitted her reply in the form of an affidavit, sworn on 07.12.2024, punctually. She has raised initial concerns and provided a detailed response for each allegation."

The 19 December order signed by Lokpal chairperson Justice AM Khanwilkar and five other members deemed it appropriate to give all parties an opportunity of the oral hearing to clarify their positions taken in the complaints or the affidavit.

The Lokpal has therefore instructed the registry to send notifications to both the RPS and the complainant(s), offering them the chance to participate in an oral hearing on 28 January.

"It will be open to the respondent public servant (RPS) as well as the complainant to authorise an advocate to espouse their cause if they so desire at the time of the oral hearing," the order said.

The Lokpal said, "It is appropriate and in the interest of justice that the complainants are provided a copy of the affidavit and documents filed by the RPS by way of response to the respective complainants and the supplementary affidavits".

The anti-corruption watchdog instructed its registry to send a copy of Buch's sworn statement and its associated documents to the individuals who lodged the relevant complaints.

"The complainants, however, shall ensure that confidentiality of the process and the contents of the affidavit is maintained...," the order said.

The statement clarified that if they intend to depend on any documented verdicts, they must submit a properly paginated compilation of these decisions well before the deadline of 18 January 2025. The issue has been scheduled for discussion at 11:30 am on 28 January.

On 20 September, the Lokpal issued an order stating that the complaint lodged by the TMC MP, which alleged misconduct and a conflict of interest involving the SEBI chief, was not compelling enough for it to demand an investigation.

During the examination of two complaints, one of which was filed by the TMC MP, the anti-corruption ombudsman made his remarks. These complaints were lodged based on a report from the "activist short-seller" based in the United States.

In their report, Hindenburg Research, a short-seller based in the United States, claimed that Buch and her spouse held interests in little-known offshore funds. These funds were reportedly used in the purported money laundering scandal associated with the Adani Group.

They refuted the accusations, asserting that the short-seller was undermining the integrity of the capital markets regulator and attempting to tarnish their reputation.

The Adani Group also characterised the allegations by Hindenburg Research as malicious and manipulation of selectively chosen public information.