Hindenburg questions SEBI chief's silence on fresh charges
New Delhi (PTI): US-based short seller Hindenburg Research has questioned SEBI chief Madhabi Puri Buch's "complete silence" on fresh allegations of impropriety, conflict of interest and accepting payments from companies while serving as a member of the market regulator.
Hindenburg, which had in January 2023 accused Adani Group of using tax havens to sidestep local market regulations, had last month alleged that Securities and Exchange Board of India (SEBI) chairperson Buch's previous investments and dealings may be behind the slow probe against the conglomerate.
While Buch and the Adani Group had denied last month's allegations, the opposition Congress party has in recent days made a series of allegations against Buch including holding 99 per cent shares in a company "actively providing advisory/consultancy services till date" and her husband Dhaval Buch earning income from companies that were being adjudicated by her.
Buch, who has so far not responded to the allegations, on Thursday cancelled her appearance at the NaBFID Infrastructure Conclave in Mumbai. She was listed as a keynote speaker at the conclave.
"New allegations have emerged that the private consulting entity, 99 per cent owned by SEBI Chair Madhabi Buch, accepted payments from multiple listed companies regulated by SEBI during her time as SEBI Whole-Time Member. The companies include: Mahindra & Mahindra, ICICI Bank, Dr. Reddy's and Pidilite," Hindenburg said in a post on X, formerly Twitter.
These allegations, it said, "apply to Buch's Indian consulting entity with no details thus far on Buch's Singapore-based consulting entity."
"Buch has maintained her complete silence for weeks on all of the emerging issues," it added.
Hindenburg had on August 11 alleged that Buch had previous investments in an offshore fund, also used by the Adani Group.
Buch and her husband had denied those allegations.
Since then, Congress and Zee group chairman Subhash Chandra have levelled charges against them but they have not responded so far.
Congress has alleged that Dhaval Buch earned Rs 4.78 crore from Mahindra Group at a time when the regulator was investigating it for market infractions.
Responding to the allegation, Mahindra & Mahindra has stated that the "Group 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."
It said he joined Mahindra Group almost 3 years before Madhabi Puri Buch was appointed as SEBI chairperson. "Compensation has been specifically and only for Buch's supply chain expertise and management acumen, based on his global experience at Unilever."
Prior to becoming chairperson, she was a Whole-Time Member of SEBI from April 2017.
Separately, Dr Reddy's Laboratories and Pidilite Industries also stated that they had engaged the services of Dhaval Buch when his wife held second highest office at SEBI but denied allegations of any conflict.
While Dr Reddy's said it paid Rs 6.58 lakh to Buch in exchange for his services, Pidilite said that it has never been under any SEBI enquiries or orders.
Last month, Hindenburg had alleged that the Buchs opened an account in 2015 with a wealth management firm in Singapore to invest undisclosed sum of money in a Mauritius-registered offshoot of a Bermuda-based fund. The Mauritian fund was run by an Adani director and its ultimate parent was the vehicle used by two Adani associates to round-trip funds and inflate stock prices.
Hindenburg also alleged that she held 100 per cent interest in a Singaporean consulting firm, Agora Partners from April 2017 to March 2022 while she was a Whole-Time Member in SEBI. She passed on the shares to her husband two weeks after her appointment as the SEBI chairperson.
Responding, the Buchs had called Hindenburg's latest tirade an attack on the credibility of SEBI and attempted "character assassination".
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CM Siddaramaiah alleges ‘criminal conspiracy’ in Sringeri recount, vows legal action
Bengaluru (PTI): Alleging a “criminal conspiracy” by BJP candidate D N Jeevaraj in the Sringeri Assembly poll recounting, Karnataka CM Siddaramaiah on Tuesday said the outcome was manipulated after valid postal ballot votes in favour of Congress leader T D Raje Gowda were tampered with during the recounting process.
Following a Karnataka High Court order on an election petition filed by Jeevaraj, challenging Raje Gowda’s election, the reverification and recounting were conducted on Saturday.
After the reverification and recount of postal ballots for the Sringeri Assembly constituency, votes polled in favour of Raje Gowda were reduced by 255, the returning officer said.
A report on the matter has been submitted to the Election Commission of India for further action, the officer added.
Congress leader Raje Gowda had won the 2023 Assembly polls from Sringeri by 201 votes, defeating his nearest rival Jeevaraj.
Addressing a press conference in Bengaluru, Siddaramaiah said the High Court had directed the recounting of postal ballots and that irregularities were noticed during the exercise conducted on May 2.
“This is a clear case of criminal conspiracy,” Siddaramaiah said, alleging that valid votes cast in favour of Raje Gowda were altered after being accepted by counting agents of all parties, including Congress, BJP, and JD(S).
He claimed that during the recounting of postal ballots, 255 votes were initially accepted as valid by all agents but were later tampered with by subordinate officials.
“There is a second mark on the votes polled in favour of Raje Gowda. They had accepted these as valid votes. Subsequently, another mark was made by officials. This is a clear case of criminal conspiracy,” he said.
When asked who was behind the alleged conspiracy, the CM replied, “It was hatched by Jeevaraj and others. It is planned.”
Siddaramaiah further alleged that the returning officer acted improperly by declaring the result despite the presence of an Election Commission observer during the recounting.
“Immediately after the counting, the returning officer announced the result. He should not have done so; this is against the law,” he said.
He pointed out that Raje Gowda had originally won by 201 votes, but after the recounting, the BJP candidate was declared the winner by 52 votes.
“The BJP has committed a criminal act of conspiracy. This is not vote chori but vote dacoity,” he alleged.
The CM said a police complaint had already been filed by Raje Gowda’s election agent, Sudhir Kumar, and emphasised the need for electoral integrity.
“We want transparency and free and fair elections. That is what our Constitution mandates,” he added.
Stating that the government would pursue legal remedies, Siddaramaiah said, “We are preparing an appeal challenging the returning officer’s announcement in a court of law.”
Responding to a separate query on elections in other states, the CM said there appeared to be an anti-incumbency factor in West Bengal, while results in Tamil Nadu were “surprising,” adding that Vijay’s party was emerging as the largest there.
Following the victory of party candidates in Bagalkote and Davanagere South, Siddaramaiah expressed confidence about future electoral prospects in Karnataka.
“Even in 2028, we will win the Assembly elections. We will come back,” the CM said.
Siddaramaiah added that he would order a forensic examination into the alleged tampering of postal ballots.
