Madhabi Puri Buch Gets Clean Chit | The anti-corruption ombudsman Lokpal of India has officially cleared former SEBI chairperson Madhabi Puri Buch of all allegations related to conflict of interest and impropriety that were raised following a controversial report by short-seller firm Hindenburg Research. In its detailed order issued on Wednesday, the Lokpal termed the complaints as based on “presumptions and assumptions,” lacking any verifiable evidence.
The complaints, including one filed by Trinamool Congress (TMC) MP Mahua Moitra, had alleged Buch’s and her husband’s financial links to offshore funds purportedly involved in a money-siphoning scheme linked to the Adani Group. However, the Lokpal said that these claims were “untenable, unsubstantiated and bordering on frivolity,” and thus did not warrant a formal investigation.
Hindenburg Report Cannot Be Sole Basis for Action, Says Lokpal
The allegations stemmed from a Hindenburg Research report dated August 10, 2024, which suggested undisclosed offshore holdings by Buch and her spouse. The report implied that these funds may have played a role in the alleged stock manipulation and corporate governance issues involving the Adani conglomerate.
Responding to the allegations last year, Buch had strongly refuted the claims, calling them an attack on the integrity of the capital markets regulator.
In a sworn affidavit submitted on December 7, 2024, she provided a point-by-point rebuttal and raised preliminary objections to the complaint’s validity.
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The Lokpal bench, chaired by Justice A M Khanwilkar, found that the Hindenburg report could not be considered credible primary evidence. “The complainant(s) being conscious of this position advisedly attempted to articulate allegations independent of the stated report, but… the same are untenable,” the Lokpal concluded.
Oral Hearings, Submissions Led to Final Clearance
After initial responses were received, the Lokpal conducted oral hearings on April 9, 2025. While some complainants appeared through legal counsel, others chose only to file written submissions. Buch was represented by a senior counsel who made “elaborate oral submissions,” followed by a written response, as per the order.
During the proceedings, complainants relied on Sections 7 and 11 of the Prevention of Corruption Act, 1988, alleging Buch had derived undue advantage. The Lokpal, however, found no merit in these arguments. All five allegations emphasized during the hearings were addressed in the final order and ultimately dismissed.
Former SEBI Chief Exonerated After Completion of Tenure
Madhabi Puri Buch, who became the first woman chairperson of the Securities and Exchange Board of India (SEBI) in March 2022, completed her tenure on February 28, 2025. The Lokpal’s decision now clears her name post-retirement and could have implications for how regulatory officials are scrutinized based on third-party financial analysis.
The Adani Group had also previously dismissed the Hindenburg allegations as “malicious and manipulative,” criticizing the report for cherry-picking information and targeting Indian corporations for profit.
Hindenburg Research, whose founder announced the firm’s closure in January 2025, has faced increasing scrutiny for the long-term impact of its market-shaking reports.
