The Congress has intensified its criticism of Sebi chairperson Madhabi Puri Buch, alleging a significant conflict of interest due to the financial relationship between her husband, Dhaval Buch, and the Mahindra Group. According to the Congress, Dhaval Buch received Rs 4.78 crore from Mahindra and Mahindra between 2019 and 2021 for personal services rendered, while his wife was a whole-time member of Sebi, the regulatory body responsible for overseeing financial markets, including Mahindra.
Congress spokesperson Pawan Khera, during a press conference, argued that Madhabi Buch’s position at Sebi posed a conflict since she was adjudicating matters related to Mahindra, while her husband was receiving compensation from the same group. These payments, according to Congress, were made when Sebi was overseeing cases involving Mahindra. The party called for transparency and an investigation into the matter, accusing Buch of misconduct.
In response, Mahindra Group issued a statement firmly denying the accusations. The company clarified that Dhaval Buch was hired for his expertise in supply chain management after a long and distinguished career at Unilever. They emphasized that his employment and compensation had no connection to his wife’s role at Sebi. Mahindra also outlined that the specific Sebi orders or approvals mentioned by the Congress were unrelated to the company or its subsidiaries, with some occurring before Dhaval Buch's employment and others not requiring any regulatory approvals.
In a further escalation, Congress brought additional charges against Madhabi Buch, claiming that she personally benefited from her consulting firm, Agora Advisory Private Limited. Allegedly, between 2016 and 2024, Agora earned Rs 2.95 crore, with Rs 2.59 crore (or 88%) coming directly from the Mahindra Group alone. Congress questioned Madhabi Buch's assertion that the firm had ceased operations after her appointment at Sebi, accusing her of misleading the public and concealing ownership. They also named other Agora clients, including prominent companies like Dr. Reddy's, Pidilite, ICICI, and Visu Leasing.
Congress continued to press on with a series of related allegations. One such accusation was that Madhabi Buch had received Rs 16.80 crore from ICICI Bank during her tenure at Sebi, although ICICI has since denied paying her any salary. Another charge concerned rental income from a company that was under investigation by Sebi for insider trading. Congress claimed that such financial links, combined with her regulatory duties, represented a clear conflict of interest that undermined the integrity of Sebi’s oversight functions.
These developments have sparked a broader political debate about the governance and independence of regulatory bodies like Sebi. The Congress has called for an inquiry into the matter, urging stricter accountability for those in key regulatory positions. The situation has also prompted wider discussions about corporate governance and ethics, especially concerning senior officials who may have professional or personal ties to the entities they regulate. Mahindra, on its part, continues to maintain that the allegations are unfounded and driven by a misunderstanding of the facts.
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