Mahindra, Dr. Reddy’s, And Pidilite Refute Congress Accusations Against SEBI Chief Madhabi Puri Buch

Mahindra has rejected the Congress party’s accusations that SEBI Chief Madhabi Puri Buch earned ₹2.95 crore through dealings with Mahindra and other significant Indian companies during her tenure at the helm of India’s top securities regulator. The Mahindra Group has dismissed these claims as “false and misleading.”

On 10 September 2024, the Congress renewed its conflict-of-interest allegations against SEBI Chief Madhabi Puri Buch, asserting that her husband, Dhaval Buch, received ₹4.78 crore in “personal income” from the Mahindra Group between 2019 and 2021. Congress spokesperson Pawan Khera raised concerns that this occurred while Madhabi Buch was a whole-time SEBI member overseeing cases involving the Mahindra Group.

Khera also highlighted that companies listed as Agora Advisory Pvt Ltd clients included Mahindra and Mahindra Ltd, Dr Reddy’s, Pidilite, ICICI, Sembcorp, and Visu Leasing and Finance. Madhabi Puri Buch served as a full-time SEBI member from 5 April 2017 to 4 October 2021 before becoming SEBI Chairperson on 2 March 2022.

Mahindra responded, “We categorically deny any request for preferential treatment from SEBI. We uphold the highest standards of corporate governance.” The company clarified that three SEBI approvals or orders did not involve Mahindra or its subsidiaries. It noted that one was related to a fast-track rights issue that did not require SEBI approval, and another was an order from March 2018, predating Dhaval Buch’s association with the company.

Mahindra added that Dhaval Buch joined the company nearly three years before Madhabi Puri Buch’s appointment as SEBI Chairperson and has primarily worked at Bristlecone, a subsidiary specializing in supply chain consulting. His compensation was based on his expertise and global experience in supply chain management, notably from his time at Unilever.

In addition to Mahindra Group, Dr Reddy’s Laboratories refuted the Congress party’s allegations. The company stated that it hired Dhaval Buch for leadership coaching and compensated him ₹6.58 lakh for a specific period from October 2020 to April 2021.

Dr. Reddy’s explained, “We regularly engage external coaches to assist with significant role transitions for our leaders. Mr. Dhaval Buch’s extensive experience with Unilever made him an ideal coach for our identified leader, and his compensation was consistent with that of other coaches.” The company noted that this assignment concluded well before Madhabi Puri Buch’s term as SEBI Chairperson and dismissed any claims that Dr. Reddy’s received preferential treatment from SEBI as unfounded and malicious. The company maintains compliance with all relevant regulations.

Pidilite Industries also addressed the issue, stating that it frequently collaborates with highly regarded professionals and consultants. “In the fiscal year 2019-20, Pidilite engaged Dhaval Buch from Agora Advisory for his expertise in supply chain and procurement,” the company noted in a stock exchange filing. It emphasized that there have been no SEBI inquiries or cases involving the company.

Congress’s Previous Allegation

Last month, the Congress party accused SEBI Chief Madhabi Puri Buch of holding an office of profit at ICICI Bank and receiving ₹16.80 crore in income between 2017 and 2024. ICICI Bank has since refuted these claims, stating that Buch was not on its payroll.

In a separate accusation, the Congress recently alleged that Madhabi Buch received rental income from a Mumbai-based entity under investigation by SEBI for multiple cases, including insider trading.

(With Inputs From India Today)

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