Madhabi Buch received rental income from ’Wockhardt’, company under SEBI probe: Congress

After the Hindenburg report's revelations on ex Sebi chairperson Madhabi Puri Buch, the Congress' media and publicity department head Pawan Khera on Friday said that it is not just a “conflict of interest but rather out and out corruption”.

Also Read: Who is Madhabi Puri Buch really accountable to?

Speaking at a press conference, Khera alleged that ex-Sebi chairperson Madhabi Puri Buch and her husband have a company called Carol Info Services, whose part “Wockhardt Ltd” has the same promoters. “The question is, there is a company in Mumbai in the name of Madhabi Puri Buch and her husband. The company is called Carol Info Services Ltd. This is a part of a company called Wockhardt Ltd, they have the same promoters.”

He noted, “Wockhardt is a company on which SEBI is continuously giving orders and dealing with its cases. Madhabi Puri Buch is the chairperson of the same organisation (SEBI) which has complaints against Wockhardt before it. There was a case of insider trading too, her organisation (SEBI) dealt with insider trading case of Wockhardt too.”

Also Read: Hindenburg-Adani case: Top 10 allegations by the US firm on Madhabi Buch and the Sebi chief’s response

“This is a conflict of interest, I would call it corruption. This is not just conflict of interest, this is out and out corruption,” he noted.

Earlier on Thursday, a large group of SEBI employees, estimated to be over 200, staged a silent protest outside the regulator's headquarters in the Bandra Kurla Complex, demanding the resignation of Chairperson Madhabi Puri Buch.

The protesters did not speak to the media, but a handout from the group called for the withdrawal of a press release issued by SEBI the previous day and also demanded Buch's resignation. The employees assembled in front of the building, standing for approximately 90 minutes before dispersing.

Also Read: Sebi’s toxic work culture, allegations against Chairperson Madhabi Buch spark Parliamentary inquiry

Earlier on Tuesday, the Congress questioned ICICI Bank's claim that it had not paid any salary or granted ESOPs to SEBI Chairperson Madhabi Buch after her retirement. They asked why the payments described as her "retiral benefit" were inconsistent in both frequency and amount.

The regulator suspects that junior officers have been receiving messages from outside parties encouraging them to "go to the media, the Ministry, or the Board," possibly for the outsiders' own agendas.

"Sebi apprehends that the junior officers have been receiving messages from external elements outside their group, effectively instigating them to 'go to media, go to the Ministry, go to Board', perhaps to serve their own purpose. In fact, the letter of August 6, 2024, was not sent by the Sebi employee associations to the Government (and a section of the media)," the statement noted.

Moreover, the opposition party had previously raised new conflict-of-interest allegations against Buch on Monday, calling on Prime Minister Narendra Modi, as the head of the Appointments Committee of the Cabinet, to clarify her appointment.

Also Read: Countering ‘toxic’ work culture claim; Sebi says it pays ₹34 LPA to entry level officers

It alleged that since Buch took office in 2017, she has not only been drawing a salary from the SEBI but has also been holding an office of profit at the ICICI Bank, continuing to receive income from the bank to this very day, PTI reported.

The bank said it has not paid any salary or granted ESOPs to Buch after her retirement on October 31, 2013, as alleged by the Congress.

(With inputs from agencies)