Congress ups ante over SEBI row, levels more conflict of interest allegations against Madhabi Buch
New Delhi, Sep 10: The Congress on Tuesday claimed that SEBI chairperson Madhabi Buch had a 99 per cent stake in a firm when it provided consultancy services to the Mahindra and Mahindra Group and her husband received Rs 4.78 crore as income from the conglomerate while she was adjudicating cases of the same group.
Congress president Mallikarjun Kharge alleged that the SEBI's institutional integrity as a robust market regulator has been "tarnished" by Prime Minister Narendra Modi to save his "crony friends".
The Mahindra and Mahindra Group dismissed the allegations as "false and misleading in nature". The group categorically stated that it had not at any point requested the SEBI for any preferential treatment.
"We maintain the highest standards of corporate governance," a spokesperson of the Mahindra and Mahindra Group said.
In a post on X, Congress chief Mallikarjun Kharge said, "The Mega Modi-Adani Scam is being investigated by SEBI. SEBI Chairperson has multiple issues of conflict of interest. Congress party has now revealed numerous such instances."
"Modi-Shah led committee appointed the SEBI Chairperson. Did they deliberately appoint her to benefit their crony friends? Or were they unaware of the shady financial dealings? Are SEBI orders on regulated companies, now, contingent on the consultancy fees its Chairperson receives through a shady company? Is this 'Na Khaunga, Na Khane Doonga'?" he said.
"The hard-earned money of 10 crore stock market investors has been jeopardised by this mega scandal choreographed by Modi ji!" he alleged.
Congress general secretary Jairam Ramesh asked whether Prime Minister Modi was aware that Buch owns 99 per cent of Agora Advisory Private Limited and is receiving significant fees from listed entities, including Mahindra and Mahindra.
Putting out a fresh set of "revelations" on the issue of conflict of interest involving the SEBI chairperson, Ramesh said on X, "Our questions are directed pointedly at the non-biological PM who appointed her in the first place -- Is the Prime Minister aware that Madhabi Buch owns 99 per cent of Agora Advisory Private Limited and is receiving significant fees from listed entities, including Mahindra & Mahindra?"
What kind of consultancy services does Agora Advisory Private Limited provide and are they financial in nature and is the prime minister aware of Buch's ties to a conflicted entity, he asked.
"Is the Prime Minister aware that Ms. Madhabi Puri Buch's spouse is receiving a substantial income from M&M Limited after his retirement?" he asked.
Earlier, at a press conference at the AICC headquarters here, Congress' media and publicity department head Pawan Khera said the recent Hindenburg report had alleged that SEBI Chairperson Buch held 99 per cent shares in a company called 'Agora Advisory Private Limited'.
Agora Advisory is a private entity incorporated on May 7, 2013 and it claims to provide various types of advisory or consultancy services, Khera said.
"Although, in her response, Madhabi Buch had claimed that the two consulting firms set up by her in Singapore and India -- one of which is Agora Advisory Private Limited in India -- became 'immediately dormant on her appointment with SEBI', the reality is that as of March 31, 2024, she still owns 99 per cent stake in the Indian entity which has been actively providing advisory/consultancy services till date," Khera said.
Khera alleged that in 2016-17, 2019-2020, to as late as 2023-24, as a whole time member of SEBI and later as its chairperson, Buch received a total of Rs 2.95 crores through Agora Advisory Private Limited with 2017-2018 and 2018-2019 being the exception years.
The list of companies that availed consultancy service from Agora Advisory Private Limited -- Mahindra and Mahindra Limited, Dr. Reddy's, Pidilite, ICICI, Sembcorp and Visu Leasing and Finance, he said.
"Strangely, of the total 2.95 crores received by Agora Advisory Private Limited, 2.59 crores 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 4.78 Crores 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, Khera alleged.
"The year of settlements and the year of receipt of income by Dhaval Buch serendipitously coincide," Khera added.
In its statement, the Mahindra and Mahindra Group said it hired Dhaval Buch in 2019 specifically for his expertise in supply chain and sourcing soon after he retired as Unilever's Global Chief Procurement Officer.
"He has spent most of his time at Bristlecone, a subsidiary which is a supply chain consulting company. Mr Buch is currently on the Board of Bristlecone. He joined Mahindra Group almost three years before Ms. Madhabi Puri Buch was appointed as SEBI Chairperson," the Group said.
Compensation has been specifically and only for Dhaval Buch's supply chain expertise and management acumen based on his global experience at Unilever, it said.
The Mahindra and Mahindra Group also said that none of the five SEBI orders or approvals referenced in the allegations are relevant and three out of the five 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 was issued in Mar(ch) 2018, well before Mr Dhaval started working with the Mahindra Group," the company said.
The institutional integrity of SEBI as a robust Market Regulator has been tarnished by PM @narendramodi to save his crony friends!
— Mallikarjun Kharge (@kharge) September 10, 2024
The Mega Modi-Adani Scam is being investigated by SEBI.
SEBI Chairperson has multiple issues of conflict of interest.
Congress party has now…
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Report on Sambhal mosque survey likely to be submitted to local court; security tight in district
Sambhal(UP) (PTI): Security was stepped up across the district ahead of Friday prayers and the likely submission of a report on the survey of the Shahi Jama Masjid here by the court-appointed ASI team following claims that a temple once stood at the spot.
Tension has been brewing in Sambhal since November 19 when the court-ordered survey of the Shahi Jama Masjid was carried out following claims that a Harihar temple previously stood at the site.
Divisional Commissioner of Moradabad, Aunjaneya Kumar Singh said security measures have been reinforced at sensitive religious sites in the area and around the court in Chandausi.
The lawyer for the Hindu side, Gopal Sharma, said the court hearing on Friday will see the plaintiff's side present their reply, and the court commissioner is expected to submit the findings from the survey conducted on the disputed site.
"Our further action will be determined after the survey report is reviewed," Sharma said.
Shakeel Ahmed Warsi, the lawyer representing the Muslim side, said they are fully prepared to present their case.
"We have all the necessary evidence, and we will first request a copy of the survey report before strongly presenting our side in court," Warsi stated.
Violence erupted on November 24 as protesters gathered near the mosque and clashed with security personnel, leading to stone pelting and arson. Four people died and scores of others were injured in the violence.
The situation remains tense, and local authorities are closely monitoring the developments to maintain peace and order.
