The Congress accused Madhabi Puri Buch, Chairman of the Securities and Exchange Board of India (Sebi), and her husband Dhaval Buch of receiving Rs 4.78 crore from Mahindra and Mahindra (M&M) between 2019 and 2021, adding to its criticism of the couple. According to Congress leader Pawan Khera, Sebi issued roughly four directives related to M&M during this time period.
M&M refuted the charges, calling them "false and misleading". However, it noted that Dhaval Buch was engaged by Mahindra Group in 2019 "specifically for his expertise in supply chain and sourcing" following his retirement as Unilever's global chief procurement officer. "We unequivocally affirm that we have not asked any preferential treatment from SEBI. "We uphold the highest standards of corporate governance," the automaker stated in an exchange filing.
Dhaval Buch serves on the board of Bristlecone, a subsidiary of M&M. "He joined the Mahindra Group nearly three years before Ms. Madhabi Puri Buch was appointed as Sebi chairperson." M&M stated that Mr Buch's compensation was precisely tailored to his supply chain skills and management aptitude, based on his global experience at Unilever.
The group stated that none of the orders or approvals included in the Congress party's charges were relevant because three of them did not apply to the company or its subsidiaries, and one was a fast-track rights issuance that did not require Sebi permission. Another order cited by the Congress as a conflict of interest came from March 2018, before Dhaval Buch began working with the Mahindra company.
The opposition party said that Puri Buch's consultancy firm, Agora Advisory, got payments from M&M, Dr Reddy's Lab, Pidilite, ICICI Bank, and two other companies while she was a market regulator. Puri Buch and her husband Dhaval Buch co-founded the consultancy firm Agora Advisory.
"This is a case of willful concealment" and conflict of interest, Khera stated, adding that his party will provide additional material this week. "The companies that have financial relationship with Agora are all being adjudicated by Sebi." .
Khera emphasized that the advising firm was "active," despite the Sebi chairperson's claims that it had gone dormant during her tenure. Hindenburg, a short-seller based in the United States, alleged in a follow-up report that Agora earned Rs 2.54 crore during fiscal years 21 and 24. The Ministry of Corporate Affairs of India's website listed Dhaval as the director of Agora Advisory.
Khera claimed that the rental income from a firm linked with Wockhardt, a pharmaceutical and biotechnology company, was corrupt. Last Monday, the Congress accused Buch of having a financial tie with the company while heading Sebi's probe into Wockhardt, alleging a conflict of interest.
"We categorically dispute these charges, claiming that they are completely false and deceptive. The company has acted and continues to act in accordance with all applicable laws," Wochkardt stated in an exchange filing on Friday.
Buch was originally appointed as a full-time Sebi member in April 2017. She left office in October 2021 and rejoined the securities regulator as chairperson in March 2022. Both Sebi and the Buchs issued separate comments refuting all of the charges, calling them false and an attempt at character assassination.
The Congress party also questioned Buch's claimed payments and ESOPs from her former employer, ICICI Bank, both in terms of amount and regularity of disbursements. The private lender denied the allegations, claiming Buch was neither paid a salary or given any ESOPs following her resignation in October 2013.
The bank further said that its employees might exercise their ESOPs at any time after they vested, up to ten years later.
