Lokpal rejects all allegations against SEBI ex-chief Madhabi Puri Buch

The Lokpal has dismissed all complaints filed against former SEBI Chairperson Madhabi Puri Buch, primarily based on allegations arising from the Hindenburg Report alleging corruption, conflict of interest, and quid pro quo dealings connected to her role at SEBI and certain regulated entities, including the Adani Group.

Three complaints were filed against the then-Chairperson Buch, primarily based on allegations arising from the second Hindenburg Report alleging corruption, conflict of interest, and quid pro quo dealings connected to her role at SEBI and certain regulated entities, including the Adani Group.

All three complaints were dismissed, and the allegations were termed vexatious, frivolous, and politically motivated attempts to sensationalise regulatory matters.

The complainants were also indirectly cautioned for trivialising the process.

An Adani Group spokesperson said that the Lokpal’s order affirms that the allegations of regulatory favouritism involving the Adani Group were completely baseless. The company has been totally exonerated by a Constitutional Authority.

The Lokpal order stated: "We have concluded that the allegations in the Complaint(s) are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences in Part III of the Act of 1988, so as to direct an investigation therefor."

"Accordingly, these complaints are disposed of."

"The effectiveness of the investigations and action taken by SEBI against the Adani Group of companies has been commended to the Supreme Court. That cannot be reopened directly or indirectly," the order said.

The SEBI’s investigation and regulatory decisions, particularly around the Adani Group, have withstood scrutiny at the highest levels — both judicial (Supreme Court) and quasijudicial (Lokpal), the company spokesperson said.

The Lokpal clearly viewed the Hindenburg Report as an unreliable and partisan document authored by a known short-seller.

"The complaint(s)... were essentially founded on the Hindenburg Report... that report by itself cannot be made the sole basis to escalate action against the RPS... allegations... are untenable, unsubstantiated and bordering on frivolity,” the Lokpal order said.

The order indirectly acknowledged that the Adani Group was being targeted through politically motivated complaints against a regulator.

"The Complainant(s) by making such unverified and flimsy or fragile allegations, only to sensationalise or so, politicise the matter, has inevitably trivialised the process before the Lokpal. It is nothing short of vexatious proceedings," the order said.

No wrongdoing or manipulation by Adani Group companies has been found by any competent authority so far — from the SEBI to the Supreme Court to the Lokpal, the company spokesperson said.

"The named RPS and her husband were only passive investors... had no control... no connection with... Adani Group shares, as has been revealed in the investigations," the Lokpal order observed.

The order is a strong endorsement of due process and an important precedent against media trials, foreign speculative reports, and unverified allegations.

“We have followed the test enunciated by the Constitution Bench... in Lalita Kumari... the allegations... not supported by any verifiable material,” the order pointed out.

By reiterating the SEBI’s institutional integrity and rejecting conflict of interest charges, the order sends a strong signal that India’s capital markets are robustly governed.