Lokpal Clears Former SEBI Chief Madhabi Puri Buch, Slams Complainants for Politically Driven Allegations

GG News Bureau
New Delhi, 29th May: Former SEBI chairperson Madhabi Puri Buch has been given a clean chit by the Lokpal, which dismissed all corruption allegations against her as baseless and politically motivated. In a strongly worded order, the anti-corruption watchdog also reprimanded the complainants for approaching it with “unclean hands” and warned that their conduct amounted to misuse of process aimed at gaining publicity rather than justice.

The complaints — filed by Trinamool Congress MP Mahua Moitra, senior lawyer Prashant Bhushan, and former IPS officer Amitabh Thakur — accused Buch of having financial ties to the Adani Group, questionable income sources, and conflicts of interest. But the Lokpal found no merit in the accusations and strongly rebuked the trio for misusing its platform.

In its detailed 116-page order, the anti-corruption body said the claims were largely based on “presumptions and assumptions” and lacked any solid or verifiable evidence. It warned that the act of filing such frivolous complaints only served to trivialise the institution’s process, and amounted to “vexatious proceedings” — a misuse that could lead to punishment under Section 46 of the Lokpal and Lokayuktas Act.

“The conduct of the complainants reflects a misuse of process. Their intent appears more political than principled,” the order noted.

The Lokpal also took exception to the complainants’ reliance on a report by Hindenburg Research — a U.S.-based short-seller known for targeting the Adani Group. It stated that SEBI’s actions against the group had already been appreciated by the Supreme Court, and any attempt to question that through indirect means would not be entertained.

Attempting to distance themselves from the Hindenburg report, the complainants had framed their charges around separate allegations. However, the Lokpal found those claims equally hollow. “They are unsubstantiated and border on frivolity,” the order said.

What also raised eyebrows was one complainant’s decision to publicise the complaint on social media, which the Lokpal said was a clear violation of the confidentiality requirements enshrined in law. “This was done not to seek justice, but to attract publicity,” the order remarked, adding that when the media narrative around the complaint lost steam, the Lokpal seemed to have been approached to “keep the issue alive.”

Buch, a former investment banker and the first woman to head SEBI, was accused of financial misconduct during her tenure — including alleged stock option gains, rental income issues, and favourable treatment to companies under scrutiny. All such charges now stand dismissed.

Legal experts say the Lokpal’s order sends a strong message that serious institutions should not be used for political theatrics or headline-hunting.