Buch received rent from entity linked to company under SEBI probe, claims Congress

At a press conference at the AICC headquarters, 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 Limited was under SEBI’s investigation for various cases including that of insider trading during the year 2023… This is an outright case of corruption that invokes conflict of interest violating Section 4, 7, & 8 of SEBI’s 2008 Code on Conflict of Interests for Members of Board,” he added.

Flagging that the SEBI chairperson was appointed “on March 2, 2022 by the Appointments Committee of Cabinet, which the PM heads”, Khera said, “Was her appointment cleared on the condition that she could maintain her previous financial relationships, provided she acted in line with the wishes of Prime Minister and his close associates?”

Pointing out that previous SEBI chiefs went to great lengths to avoid “even the appearance of a conflict of interest, both at SEBI and in their earlier positions”, he said: “In contrast, Ms Buch merely transferred her investments to her spouse, which raises concerns about credibility. Why was there no effort to verify whether Ms Buch would follow these established standards? Or was this lack of scrutiny part of a mutually beneficial arrangement?”

Denying the allegations, Wockhardt Limited said: “It has come to our attention there are certain allegations pertaining to payment of rent by Carol Info Services Limited and its connection with certain orders passed by SEBI in relation to the Company. In this regard, we categorically deny these allegations and state that these allegations are completely baseless and misleading. The Company has acted and continues to act in compliance with all applicable laws.”

The Congress had on Monday accused Buch of “holding an office of profit at ICICI Bank”, and continuing to receive income to the tune of Rs 16.80 crore since she took over the post in 2017.  However, ICICI Bank, said the bank or its group companies have “not paid any salary or granted any ESOPs” to Buch after she retired.