Lokpal Asks SEBI Chairperson Buch To Respond to Complaints by MP Mahua Moitra, Others

Moneylife Digital Team 08 November 2024

Investor Interest

Taking cognizance of complaints filed by Mahua Moitra, a member of Parliament (MP) from Trinamool Congress and two others, the Lokpal has asked Madhabi Puri Buch, chairperson of the Securities & Exchange Board of India (SEBI) to respond to complaints of financial irregularities filed against her. Ms Moitra had filed the complaint alleging improper conduct by Ms Buch and entering into quid pro quo arrangements, which, according to the MP, 'threaten India's national interests'.

In an order, the full Lokpal bench headed by justice AM Khanwilkar says that as per the Lokpal and Lokayuktas Act, 2013, the SEBI chairperson is being given a chance to explain her stand, after which the anti-corruption ombudsman would decide whether there exists a prima facie case for investigation.

The bench says, "Needless to clarify, the named respondent public servant (RPS) (Ms Buch) is free to submit her response or explanation in terms of this order, complaint-wise or a consolidated one in all the three complaints, as may be advised to avoid repetition. We reiterate that this order is not an expression of our opinion on 'any matter in issue', either way. This is only a procedural direction in consonance with the third proviso in section 20(1) of the Act of 2013."

"We also make it amply clear that since the allegations are primarily against the named RPS being a public servant and implicit reference is made to other persons, coupled with the fact that the complainant(s) themselves have primiraly prayed for action under the Act of 2013 against the named RPS, the opportunity to offer an explanation is being limited to the named RPS in the respective complaint at this stage," it added.

The Lokpal asked Ms Buch to file an affidavit to offer an explanation, in terms of the order, within four weeks from the receipt of the copy of the lastest order.

According to the order, three complaints have been filed on the same matter.

In September, while deciding on two complaints filed by different individuals based on a report by US-based short-seller Hindenburg Research, anti-corruption ombudsman Lokpal said the complaints alleging impropriety and conflict of interest against Ms Buch 'fell short' of persuading it to order any probe. While Lokpal did not provide the name of the first complainant, the second complaint was filed by Ms Moitra.

In the September order, the Lokpal asked both the complainants, including the Trinamool Congress MP, to file affidavits mentioning details of the efforts they made to verify the authenticity and credibility of the claims in the recent report of Hindenburg Research published on 10 August 2024.

It also asked them to articulate the allegations against the person concerned which may constitute an offence of corruption within the ambit of the Prevention of Corruption Act, 1988, 'provision wise'. (Read: Complaint against SEBI Chief 'Falls Short' of Persuading To Order a Probe: Lokpal)

In her complaint, Ms Moitra stated, "The Indian stock market now has roughly 10 crore citizens who are direct or indirect investors. Moreover, foreign investors have also expressed deep concern with the credibility and integrity of India's stock market and its regulator. Hence, this is a serious matter of national interest and thereby ought to be immediately investigated for violation under the Prevention of Corruption Act."

In her complaint, the Trinamool Congress MP also mentioned allegations made by Hindenburg Research, a short-seller from the US, about Ms Buch and her husband Dhaval Buch, holding a stake in two companies, one in Singapore and the other from India and Rs3.63 crore income earned by Agora Advisory Pvt Ltd. (Read: Mahua Moitra Files Lokpal Complaint against SEBI Chief)

Comments

User

brajesh.nath

4 months ago

Going by the conduct of official bodies it is amply clear nothing will happen in the present case and the person under the scanner would continue to flaunt her new found confidence.