Eighteen months after raising concerns about alleged malfeasance and stock manipulation within the Adani Group, U.S.-based short-seller Hindenburg Research has now turned its attention to Madhabi Puri Buch, the chairperson of India’s Securities and Exchange Board (SEBI), who is leading the investigation into the Adani allegations.
In a new report released on Saturday, August 10, 2024, Hindenburg alleged that Buch and her husband, Dhaval Buch, held stakes in offshore entities linked to what the firm describes as the “Adani money siphoning scandal.”
Citing documents purportedly from a whistleblower, Hindenburg claimed that the Buchs held interests in offshore funds based in Bermuda and Mauritius through intricate structures.
The report alleged that in 2017, just weeks before Madhabi Puri Buch’s appointment as a whole-time SEBI member, Dhaval Buch requested to be the sole authorized operator of certain Mauritius-based accounts. The report also claimed to have an account statement from February 2018, addressed to Buch’s private email, showing their stake in a Mauritius fund valued at over $872,000.
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Hindenburg drew attention to the alleged links between these funds and Vinod Adani, Gautam Adani’s brother, suggesting a potential conflict of interest given SEBI’s ongoing investigation into the Adani Group’s offshore shareholders.
The short-seller criticized SEBI’s investigation as lacking rigor, hinting that the regulator may have been hesitant to fully investigate due to its chairperson’s alleged involvement.
In response, Madhabi Puri Buch and her husband strongly denied the allegations, calling them baseless and accusing Hindenburg of attempting character assassination in retaliation for SEBI’s enforcement actions against the firm.
Hindenburg further alleged that Buch held a 100% interest in a Singaporean consulting firm, Agora Partners, until March 2022, when she transferred her shares to her husband.
The firm also questioned the appointment of Dhaval Buch, a former Unilever procurement officer, as a senior advisor at Blackstone, a global private equity firm with significant investments in India, including real estate investment trusts (REITs) promoted by SEBI under Buch’s leadership.
Additionally, the report pointed to another firm, Agora Advisory, where Buch currently holds a 99% stake. Hindenburg claimed the firm generated substantial revenue from consulting, far exceeding her disclosed salary as a SEBI member.
Hindenburg concluded that these alleged connections raise serious questions about potential conflicts of interest, suggesting that SEBI may not be a reliable and impartial investigator in the Adani matter. The firm called for further scrutiny and transparency in the investigation.
