The Congress party, under the leadership of Pawan Khera, has escalated its attack on the chairperson of the Securities and Exchange Board of India (Sebi), Madhabi Puri Buch, raising fresh allegations of conflict of interest and possible corruption. The accusations revolve around rental income Buch allegedly received from Carol Info Services Ltd, a company with ties to Wockhardt Limited—a firm under investigation by Sebi for multiple cases, including insider trading. Khera has painted this as a severe breach of ethical standards, calling it “not just conflict of interest, but a case of out-and-out corruption.”
According to the Congress, Buch rented her Mumbai property to Carol Info Services starting in 2018-19 for an annual rent of Rs 7 lakh. Over the years, this amount surged, reaching Rs 46.05 lakh in 2023-24, bringing the total rent received over five years to Rs 2.16 crore. Khera emphasized that Carol Info Services is closely linked with Wockhardt, which has been facing scrutiny from Sebi under Buch's leadership. He further highlighted that both companies share the same promoters, implying a direct connection between Buch’s personal financial dealings and her professional responsibilities as head of Sebi, the very regulator investigating the firm.
Khera also shared detailed rent figures to substantiate his claims: in 2019-20, the rent for the property jumped to Rs 36 lakh and continued to increase. The Congress leader asserted that the situation poses serious questions about Buch’s impartiality as a regulator, given that she was supposed to be overseeing the investigation into Wockhardt. He stated, “It is beyond ethical and legal limits that a sitting Sebi chairperson received payments from a company whose affiliate was under investigation by the very institution she headed.”
These new allegations come on the heels of a separate controversy involving Buch. Just days earlier, Congress accused her of holding an office of profit at ICICI Bank while serving as a full-time member of Sebi. Congress claimed Buch received a substantial income of Rs 16.80 crore from ICICI Bank between 2017 and 2024, which the party argued compromised her role at the regulatory body. ICICI Bank has since issued a statement refuting these allegations, stating that it did not pay any salary or offer any ESOPs (Employee Stock Ownership Plans) to Buch after her retirement from the bank.
The timing of these allegations has raised eyebrows, particularly as the Public Accounts Committee (PAC) of Parliament, headed by Congress MP KC Venugopal, is expected to summon Buch as part of its performance review of regulatory bodies, including Sebi. The committee may seek to probe deeper into these allegations, potentially calling Buch to testify and clarify her financial dealings.
Khera’s remarks have fueled speculation about the broader implications of these accusations, not only for Madhabi Buch’s position but also for Sebi’s credibility as India’s financial watchdog. The Congress party appears to be doubling down on its offensive, with Khera asking, “Is it ethical? Is it legal?” as he reiterated that Buch’s rental income from Carol Info Services amounted to a direct conflict of interest.
As the controversy unfolds, opposition parties may continue to pressure both the Sebi chairperson and the government for a more transparent investigation into the matter. At the same time, Buch herself has remained silent, choosing not to respond publicly to the serious allegations.
