The Lokpal has directed the Securities and Exchange Board of India’s (SEBI) chairperson Madhabi Puri Buch to offer an explanation on the complaints of conflict of interest and impropriety filed by Trinamool Congress MP Mahua Moitra and two others, in reference to a report by US-based short-seller Hindenburg Research.
The anti-corruption authority, however, has clarified that the order was only a procedural directive and not an express opinion about any matter at hand. “We reiterated that this order is not an expression of our opinion on ‘any matter in issue’, either way. This is only a procedural direction…,” according to the order passed on Friday.
The order signed by Lokpal chairperson Justice A M Khanwilkar and five other members said that this is an “opportunity” given to SEBI chief before the bench proceeds to determine whether there exists a prima facie case for investigation into the allegations.
“…We deem it appropriate to call upon the named RPS (respondent public servant) to offer explanation qua the allegations made against her in the respective complainant and elaborated in the concerned explanatory affidavit,” the order said.
The chairperson has to file an affidavit to offer an explanation, in terms of the order, within four weeks from the receipt of the copy of the Lokpal order.
Buch can submit her response or explanation complaint wise in all the three complaints to avoid repetition, the order said. The matter will be heard next on December 19.
In September, the Lokpal had said that the complaints alleging impropriety and conflict of interest against Ms Buch “fell short” of persuading it to order any probe, and directed Moitra and another complainant to explain in more detail.
The Lokpal had also asked the complainants to state what efforts they took to verify the claims made by the US-based short-seller Hindenburg Research on August 10. The complainants subsequently filed affidavits further explaining their allegations against the SEBI chief.
In August, Hindenburg Research had alleged that the SEBI chief and her husband Dhaval Buch had “hidden stakes” in offshore entities linked to stock price manipulation and money laundering by the Adani Group. Madhabi and Dhaval Buch have denied the allegations in a statement to the press.
Ms Moitra, in her complaint, had alleged improper conduct by Ms Buch and entering into quid pro quo arrangements, referring to allegations made by Hindenburg Research, which, according to the MP, ‘threaten India’s national interests.”