Mahindra, Other Firms Respond After Congress Targets SEBI Chief Madhabi Puri And Husband Dhaval Buch: All About It

The Congress has stepped up its attack on SEBI Chairperson Madhabi Puri Buch, claiming on Tuesday (10 September) that she held a 99 per cent stake in Agora Advisory Private Limited, a consultancy firm “actively providing advisory/consultancy services till date".

The party also accused her husband, Dhaval Buch, of receiving Rs 4.78 crore from Mahindra & Mahindra, while she was adjudicating cases related to the same group as a Whole Time Member of SEBI.

Addressing a press conference at the AICC headquarters in New Delhi, Pawan Khera of the Congress said the Hindenburg Research report had alleged that Buch held 99 per cent shares in a company called Agora Advisory Private Limited.

Addressing a press conference at the AICC headquarters in New Delhi, Pawan Khera of the Congress said the Hindenburg Research report had alleged that Buch held 99 per cent shares in a company called Agora Advisory Private Limited.

Khera said the Agora Advisory was incorporated in 2013 and provided a range of advisory or consultancy services.

While Buch had previously stated that her consulting firms became dormant upon her SEBI appointment, Khera countered by claiming that Buch still held a 99 per cent stake in the Indian entity up until March 2024.

He further alleged that the firm "has been actively providing advisory/consultancy services till date".

The Congress leader further accused Buch of receiving Rs 2.95 crore through Agora Advisory in 2016-17, 2019-2020, to as late as 2023-24.

These payments were alleged to have occurred during her tenure as SEBI's Whole Time Member and later as its Chairperson.

Khera also listed several companies that had reportedly sought consultancy services from Agora Advisory, including Mahindra & Mahindra, Dr. Reddy’s, Pidilite, ICICI, Sembcorp, and Visu Leasing and Finance.

“Strangely, of the total Rs 2.95 crore received by Agora Advisory Private Limited, Rs 2.59 crore has come from one entity alone, the Mahindra & Mahindra Group… If this was not shocking enough, the SEBI Chairperson’s husband, Mr. Dhaval Buch, received Rs 4.78 crore as income in a personal capacity from the Mahindra & Mahindra Group,” Khera alleged.

This comes at a time when his wife, as a Whole Time Member of SEBI, was adjudicating cases of the same group, he alleged.

In response, Mahindra & Mahindra clarified that Dhaval Buch was hired for his expertise in supply chain and sourcing, following his retirement from Unilever as its Global Chief Procurement Officer in 2019, three years before Madhabi Buch’s SEBI appointment.

“Compensation has been specifically and only for Buch’s supply chain expertise and management acumen, based on his global experience at Unilever,” it said.

Mahindra also noted that Buch had primarily worked at Bristlecone, a subsidiary of the group focused on supply chain consulting.

“Buch is currently on the Board of Bristlecone. Compensation has been specifically and only for Mr Buch’s supply chain expertise and management acumen, based on his global experience at Unilever,” it said.

Referring to the SEBI orders relating to M&M Group, it said, “none of the five SEBI orders or approvals referenced in the allegations are relevant. Three out of the five approvals or orders of SEBI do not pertain to the company or any of its subsidiaries.”

“One was a fast-track rights issue, which did not require any approval from SEBI. One was an order issued in March 2018, well before Dhaval started working with the Mahindra Group. We categorically state that we have not, at any point, requested SEBI for any preferential treatment. We consider these allegations false and misleading in nature,” M&M said.

Dr Reddy’s Laboratories, in an exchange filing, said that it had engaged Dhaval Buch’s leadership coaching services for a fee of Rs 6,58,000, noting that it regularly employs external coaches to enable significant role transitions of its leaders.

“The assignment started and ended well before Madhabi Buch’s term as SEBI Chairperson. Any suggestion that the company was treated differently by SEBI as a result of this would be baseless and malafide,” Dr Reddy’s said.

“Dhaval Buch’s work in India and globally for Unilever was well-suited to coach the identified leader in our company, and the remuneration paid to Buch was in line with that of other coaches,” it said.

Pidilite Industries, in its filing, confirmed hiring Dhaval Buch for his expertise in supply chain and procurement during FY 2019-20, stating that it regularly collaborates with renowned consultants in various fields.

“We further state that there have never been any enquiries or cases from SEBI vis-à-vis the company,” Pidilite said.

Earlier, Congress had accused Buch of holding an “Office of Profit” at ICICI Bank, alleging that she received Rs 16.80 crore from the bank between 2017 and 2024.

However, ICICI Bank denied these claims, stating that Buch had received no salary or ESOPs from the bank post-retirement, other than her retiral benefits.

Visu Leasing and Sembcorp, mentioned by Congress, are unlisted entities.

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