Congress' Latest Exposé: Alleges Sebi Chief Madhabi Puri, Husband Dhaval Buch Had Links With 6 Big Companies, While Holding Public Office

Pawan Khera, Chairman, Media and Publicity Department, Congress, in a press conference said, Agora Advisory Private Limited, linked with the Buches, gave consultancy to 6 companies while she became a whole-time member of Sebi.

New Delhi: The opposition Congress on Tuesday launched another round of attack against Sebi Chairperson Madhabi Puri Buch and her Husband Dhaval Buch of having given consultancy to 6 companies in India while remaining in public office.

Pawan Khera, Chairman, Media and Publicity Department, Congress, in a press conference said, Madhabi Puri Buch’s 99% shareholding in a consultancy firm Agora Advisory Private Limited (touted to be a joint holding company by the Buches) gave consultancy to 6 companies while she became a whole-time member of the Securities and Exchange Board of India (SEBI) and eventually becoming the chief of Sebi.

Khera said this potentially violates the market regulator’s conflict of interest policy. Citing public documents that the Congress has accessed, Khera alleged that Madhabi Puri earned Rs 2.95 crore between 2016-17, 2019-20 and 2023-2024 all the while she was whole-time member of the Securities and Exchange Board of India (SEBI) and subsequently becoming the chairperson of Sebi. Agora Advisory Private Limited gave consultancies to Dr Reddy's, Pedilite ICICI, Visu Leasing And Finance, Mahindra and Mahindra Ltd, Pidilite and Sembcorp. 

"A whistleblower has given us the information and we took 3 days for research, and for collecting papers, after which we are out with this expose," said Khera who also promised to share the details of the papers during the press conference.

Khera in the press conference argued that all the six companies mentioned above are listed companies and are regulated by Sebi whose chairperson is Ms Buch which has relations with the latter's husband Dhaval Buch that owns Agora Advisory Private Limited. 

He argued that of the Rs 2.95 crore that Agoda linked to the Sebi chief earned, the maximum share (86 percent) came from Mahindra and Mahindra. He further alleged that between 2019-2021, Dhaval Buch got Rs 4.78 crore from Mahindra and Mahindra. This too during the time when Madhabi Puri was the whole-time member of the Sebi, which is a clear conflict of interest, Khera said.

Mahindra And Mahindra Claims Allegations Made By Congress

Mahindra And Mahindra has refuted all the allegations made by the Congress.

M&M said, the allegations suggest conflict of interest on payments made to Mr. Dhaval Buch, husband of Mrs. Madhabi Buch, SEBI Chairperson. In view of the above, the Company on its own considers it necessary to clarify to the Stock Exchanges as follows:

- Mahindra Group hired Mr. 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 3 years before Ms. Madhabi Puri Buch was appointed as SEBI Chairperson.

- Compensation has been specifically and only for Mr. Buch’s supply chain expertise and management acumen, based on his global experience at Unilever.

- None of the 5 SEBI orders or approvals referenced in the allegations are relevant. Details are: - three out of the five approvals or orders of SEBI 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 issued in Mar 2018, well before Mr. Dhaval started working with the Mahindra Group.

- We categorically state that we have not, at any point, requested SEBI for any preferential treatment. We maintain the highest standards of corporate governance. We consider these allegations false and misleading in nature.