Hindenburg-Sebi Row: Madhabi Puri Buch, Husband Issue Joint Statement; Duo Rejects Conflict Of Interest Charges

New Delhi: Sebi Chairperson Madhabi Puri Buch and her husband Dhaval Buch issued a fresh statement on Friday, refuting all the charges levelled against them by Hindenburg Research and the Opposition Congress in the last couple of days.

Issuing joint statement in their personal capacity, the Buches commented, "There have been numerous questions raised and malicious campaigns run about our integrity."

Rubbishing all the charges, levelled against them, the Buches said attempts have been made of “character assassination. This is the third ever statement since the release of US-based research firm's report on August 10 that alleged Sebi chief's connection related to offshore funds by the Adani Group.

In a six-page statement dated September 13, the joint comments read, "It is unfortunate that questions have been raised regarding the consulting assignments of  Dhaval Buch and the firms Agora Advisory in India and Agora Partners in Singapore. There seems to be an assumption that when a spouse of a senior government official is appointed as an advisor, it must be attributed to factors beyond professional merit. Such assumptions overlook the strength of qualifications and expertise and reach conclusions that are most unfortunate".

The joint statement heaped praises on Dhaval's bright profile and career stating that he has "his own strong reputation as a leading professional in his field". 

"Despite the transparency and professional clarity given by these organisations, it is unfortunate that the need to justify decisions taken by such respected companies, based purely on Dhaval’s expertise, has to be undertaken by them and by us. The strength of his qualifications and long years of experience should be sufficient, and questions about the motivations behind the decisions taken by these companies are unfortunate and defamatory not just for Dhaval, but for these respected companies as well," noted the statement. 

Among several clarifications, the Buchs wrote, in their statement, that the recent allegations that Agora Advisory provided services to two more companies, Sembcorp and Visu Leasing, while Madhabi was a Whole-Time Member (WTM) of SEBI are "patently false". "These assignments were concluded and income accrued in 2016-2017, before Madhabi even joined SEBI as Whole Time Member," it read. 

"It has been claimed that ICICI Bank also paid Agora. What was concealed is the fact that these were interest payments on deposits. Ascribing motive to it is unfortunate and defamatory. As already stated in our previous communication, after Dhaval’s retirement, he undertook his consulting practice under the two companies Agora Advisory and Agora Partners. Dhaval’s consulting assignments were undertaken under a company structure so as to transparently isolate the income so generated and report accruals and expenses related to these assignments, as separate from his personal income and expenses," wrote the Buch couple. 

"It is unfortunate that a process that actually facilitates greater transparency is being sought to be projected as suspicious," they wrote. 

"In keeping with the highest standards of governance, Madhabi has never dealt with any file involving Agora Advisory, Agora Partners, the Mahindra Group, Pidilite, Dr Reddy’s, Alvarez and Marsal, Sembcorp, Visu Leasing or ICICI Bank at any stage after her joining SEBI. As evident from the above facts and the communications from the companies, the allegations are completely false, malicious and defamatory," mentioned the statement, asserting that she has complied with all of SEBI's disclosure and recusal guidelines while maintaining "a proactive continuing recusal list with SEBI over and above the requirements under the guidelines".

"There have been questions raised regarding the rental income received from a property owned by Madhabi and Dhaval. The property was leased out in the normal course. As it turned out subsequently, the lessee happened to be an associate of Wockhardt, a listed company which had come under investigation. Madhabi has not dealt with any files related to Wockhardt," mentioned the September 13 statement.

"Given the all-India remit of SEBI’s responsibilities, which encompass hundreds of investigations, thousands of surveillance alerts, hundreds of approvals, and hundreds of orders annually, the Chairperson is usually not even aware of specific cases, as they are handled in the normal course by other designated officials as per Delegation of Powers which have always been in place . In this context, even an allegation of conflict is not only defamatory, false and vexatious, but is clearly malicious and motivated," it added. 

"The rental agreement for the property in question was concluded in accordance with standard market practices and this property jointly owned by Madhabi and Dhaval is leased and the rental from the same is declared and tax paid accordingly. A simple internet search and analysis would show that the rental income from the property was completely in line with market rates. The assertion that the rental rates were 'off market' is patently false," it added. 

All necessary disclosures have been made to SEBI in writing right from Madhabi's appointment as a Whole-Time Member in 2017, including details about the property’s market value and the rental income derived from it, according to the couple.