Allegations of corruption swirl around Sebi chairperson Madhabi Puri Buch as Congress claims her husband received preferential treatment from Mahindra.

Madhabi Puri Buch, chairperson of Sebi, is facing allegations from the Congress party that her husband, Dhaval Buch, received substantial payments from Mahindra & Mahindra while Sebi was regulating the company. Mahindra denied these claims, stating Dhaval was hired for his supply chain expertise before Madhabi took office at Sebi. They emphasized that they never sought special treatment from the regulator. Additionally, companies like Dr. Reddy’s Laboratories defended their payments to Dhaval, asserting that their contracts began and ended before Madhabi’s tenure. The Congress party plans to release more information soon, while both the Buchs and the companies maintain their innocence against what they describe as baseless allegations.

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Sebi Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, have found themselves at the center of controversy following allegations made by the Congress Party. On September 10, 2024, Congress accused Mahindra & Mahindra (M&M) of giving nearly Rs 4.78 crore to Dhaval Buch between 2019 and 2021, seeking preferential treatment from the Securities and Exchange Board of India (Sebi).

Mahindra & Mahindra responded quickly, calling these claims “false and misleading.” They stated that Dhaval Buch was hired for his extensive expertise in supply chain management shortly after he left Unilever, where he was the global chief procurement officer. M&M insisted they have never sought any special favors from Sebi and emphasized their commitment to corporate governance standards.

The allegations stemmed from four orders issued by Sebi during the relevant time period, but M&M pointed out that three were unrelated to the company. The fourth order dated back to March 2018, before Dhaval started his role in the Mahindra Group.

Additionally, opposition leader Pawan Khera brought up concerns regarding the Buchs’ consultancy firm, Agora Advisory. Khera alleged that various companies, including Dr Reddy’s Laboratories, had financial dealings with Agora while Madhabi served at Sebi. Dr Reddy’s clarified that their engagement with Dhaval Buch for leadership coaching had nothing to do with any preferential treatment from Sebi.

As the story unfolds, the Congress Party has vowed to release more information, heightening scrutiny on potential conflicts of interest while emphasizing that the companies associated with Agora Advisory are currently facing scrutiny from Sebi.

The backlash against the Buchs comes amid claims that political motivations are behind the allegations, as both Sebi and the Buchs have publicly denied any wrongdoing. The private lender ICICI Bank also faced questions regarding its past dealings with Madhabi Buch, but they strongly denied any allegations of improper payments or stock options after her retirement.

Stay tuned for more updates on this developing story, as the political landscape remains charged with accusations and defenses.

Tags: Madhabi Puri Buch, Dhaval Buch, Sebi, Mahindra & Mahindra, Congress allegations, corporate governance, Agora Advisory, India news, preferential treatment.

1. What are the allegations against the husband of the Sebi chief?

The allegations suggest that he has links with companies involved in suspicious activities, raising concerns about potential conflicts of interest.

1. How did M&M and Dr Reddy’s respond to these allegations?

Both M&M and Dr Reddy’s denied any wrongdoing and stated that they follow all rules and regulations closely.

1. Why are these allegations important for the stock Market?

Allegations like these can create uncertainty and affect investor confidence, which may lead to fluctuations in stock prices.

1. Who is responsible for investigating these claims?

The Securities and Exchange Board of India (Sebi) would be in charge of looking into any complaints or concerns regarding Market practices.

1. What should investors do in light of these allegations?

Investors should stay informed and consider the situation carefully before making any investment decisions.