Sebi chairperson, husband call Congress allegations ‘false, malicious and motivated’

The Congress has alleged that Buch continued to draw salary from ICICI since 2017, when she joined Sebi as a whole-time member (WTM), and then took over at the helm of the market regulator. The opposition party claimed that she held 99 per cent shares in a company “actively providing advisory/consultancy services till date” and that her husband Dhaval Buch received Rs 4.78 crore as income from Mahindra & Mahindra while she “as a Whole Time Member of Sebi was adjudicating cases of the same group”.

“…the allegations made are false, incorrect, malicious and motivated. The allegations themselves are based on our Income Tax Returns. In other words, all these matters are a part of our income tax returns in which all these matters have been fully disclosed and taxes have been duly paid,” Madhabi Puri Buch and her husband Dhaval Buch said in a statement issued in their personal capacity.

The couple claimed that their income tax returns clearly have been “obtained by adopting fraudulent means and illegally”, which is a clear “breach of not only our right to privacy (which is a fundamental right) but also a violation of the Income Tax Act”.

They said that going by the pattern of creating a false narrative at periodic intervals, it appears that the allegations are being made in instalments, only to “keep the pot boiling”.

“If the objective had been to arrive at the truth rather than to malign individuals and institutions with distortions of facts, we wonder why all allegations would not be brought out, in public, at one go. We would then have given all the facts at one go,” they said in the joint statement.

“If, however, this false narrative is motivated, to achieve some other objective, then the possibility of further allegations being made repeatedly in instalments in the future may not be ruled out,” they said in the joint statement.

On ICICI Bank-related matters, in which the Congress raised a question regarding Sebi Chairperson’s Employee Stock Options (ESOPs) from the lender, the statement said, “it is completely false that the options are to be exercised only in 3 months.”

“Only employees who resigned were required to exercise their vested options within 3 months. Those who retired ( like Madhabi ) were allowed to exercise their vested options for up to 10 years,” they said.

ICICI Bank denied paying any salary or granting any ESOPs to Buch after her retirement. other than her retiral benefits.

With respect to the baseless allegation concerning payment of TDS by ICICI Bank, the couple said the fact is that ICICI Bank did not pay TDS from its own funds.

The Congress party alleged that Agora Advisory Pvt Ltd, owned by the Buchs, received Rs 2.95 crore from five companies in 2016-17, 2019-20 and 2023-24. Following the allegations, three listed companies, Pidilite Industries, Dr Reddy’s Laboratories and Mahindra & Mahindra (M&M) admitted that they had hired Dhaval Buch as a consultant or leadership coach during various periods and paid remunerations.

The Buchs said of the entire operating income of Agora Advisory since 2019, M&M accounted for 94 per cent, Pidilite about 4 per cent and the balance came from Dr. Reddys.

“Despite the transparency and professional clarity given by these organizations, it is unfortunate that the need to justify decisions taken by such respected companies, based purely on Dhaval’s expertise, has to be undertaken by them and by us,” the couple said in a statement.

On September 7, the Congress Media and Publicity Department chairperson Pawan Khera said, “Between 2018-2024, Madhabi Buch, as a whole time member and later as the chairperson of Sebi, had been receiving rental income amounting to Rs 2.16 crore from Carol Info Services Limited (a firm affiliated to Wockhardt Limited).” Wockhardt has called these claims “baseless” and “misleading”.

“It is highlighted that the rental agreement for the property in question was concluded in accordance with standard market practices and this property jointly owned by Madhabi and Dhaval is leased and the rental from the same is declared and tax paid accordingly,” the joint statement said.

The couple asserted that they were upright and honest professionals and have led their respective professional lives with transparency and dignity, earning an unblemished record.

“The fact that so far, allegations are being made with new falsehoods each time, in instalments, makes it clear that the only intention is to keep distorting facts, to keep making false allegations again and again to build a false narrative. Clearly, arriving at the truth is not the objective,” the joint statement read.