The Congress party has raised fresh allegations against SEBI Chairperson Madhabi Buch, claiming a conflict of interest involving her and her consultancy firm. According to Congress, Buch holds a 99 percent stake in Agora Advisory Private Limited, which has provided consultancy services to major firms, including the Mahindra and Mahindra Group. Additionally, her husband reportedly received Rs 4.78 crore from the conglomerate while she was adjudicating cases related to the same group.
Congress General Secretary Jairam Ramesh has questioned whether Prime Minister Narendra Modi is aware of Buch’s substantial stake in Agora Advisory and its dealings with listed entities like Mahindra and Mahindra. Ramesh has criticized Buch’s financial ties to these companies, suggesting it constitutes a conflict of interest and raises questions about the transparency of SEBI’s operations.
At a press conference, Congress’ media and publicity department head Pawan Khera alleged that Buch’s consultancy firm, Agora Advisory, has been actively providing services despite Buch’s claims that it had become dormant upon her SEBI appointment. He accused her of willful concealment and alleged that her actions are a form of criminal conspiracy, asserting that Buch’s financial interests in Agora Advisory violate SEBI’s Code of Conduct.
Khera highlighted that, between 2016 and 2024, Agora Advisory received a total of Rs 2.95 crore from various companies, including Mahindra and Mahindra, Dr. Reddy’s, and ICICI. Notably, Rs 2.59 crore of this amount came solely from Mahindra and Mahindra. He further pointed out that Dhaval Buch, Madhabi Buch’s husband, received Rs 4.78 crore in income from the Mahindra Group during a period when Madhabi was adjudicating cases involving the same company.
Mahindra and Mahindra, Dr. Reddy’s and Pidilite react
In response, the Mahindra and Mahindra Group has dismissed these allegations as “false and misleading.” The group emphasized that Dhaval Buch was hired for his expertise in supply chain management and not in connection with SEBI-related matters. The company stressed that none of the SEBI orders or approvals mentioned in the allegations are relevant to the Mahindra Group, and clarified that several of these orders predate Dhaval Buch’s tenure with the company.
A spokesperson from Dr. Reddy’s said that it is common for them to engage external coaches to support significant transitions within their team. The spokesperson said that Dhaval Buch was selected based on his extensive experience with Unilever in India and internationally, making him well-qualified to assist their designated leader. The compensation provided was consistent with that of other professional coaches. He further said that this engagement concluded well before Ms. Madhabi Buch’s tenure as SEBI Chairperson began. “Any suggestion that the Company was treated differently by SEBI as a result of this would be baseless and malafide. The Company has and continues to operate in compliance with all applicable laws,” the statement said.
In a filing with the stock exchange, Pidilite Industries stated that the company collaborates with various esteemed partners and consultants who are experts in their fields. They said that during the fiscal year 2019-20, they engaged Dhaval Buch of Agora Advisory, a globally recognized expert in supply chain and procurement, to assist with these functions. Pidilite also clarified that there have been no inquiries or cases from SEBI related to the company.
The controversy adds to ongoing scrutiny of SEBI’s leadership and raises questions about potential conflicts of interest in India’s regulatory framework.
(With PTI inputs)