The Lokpal on Wednesday gave a clean chit to former SEBI Chairperson Madhabi Puri Buch, dismissing corruption and conflict-of-interest complaints linked to the Adani-Hindenburg saga, citing a lack of evidence and calling the accusations “presumptive and unsubstantiated.”
The six-member bench headed by Justice A M Khanwilkar concluded that the complaints, including one filed by TMC MP Mahua Moitra, were based on “assumptions and not supported by verifiable material.”
“The allegations in the complaints are more on presumptions and assumptions… and do not attract the ingredients of the offences,” the Lokpal stated in its official order.
The allegations stemmed from an August 2024 report by Hindenburg Research, which claimed Buch and her husband had undisclosed stakes in offshore funds supposedly linked to a money-laundering scandal involving the Adani Group. The complainants, including Moitra, accused Buch of compromising her regulatory responsibilities as SEBI chief.
However, the Lokpal noted that the Hindenburg report, authored by a known short-seller, could not be used as the primary basis to initiate punitive action. The order stated that even attempts to frame the complaints independently of the Hindenburg report were found to be “untenable” and “bordering on frivolity.”
Buch was asked to respond to the complaints in November 2024 and submitted her affidavit on December 7, denying the charges and questioning the credibility of the source. Oral hearings were held on April 9, where both sides presented written and verbal submissions.
The Lokpal emphasized that sections 7 and 11 of the Prevention of Corruption Act, 1988, invoked by the complainants, were not applicable due to the absence of any proof of “undue advantage” being taken.
“The complainants attempted to articulate allegations independent of the stated report but… the same are untenable, unsubstantiated,” the Lokpal wrote.
Madhabi Puri Buch, who made history as SEBI’s first woman chairperson, completed her term in February 2025. She had earlier dismissed the Hindenburg-linked claims as a targeted attack aimed at discrediting the market regulator.
Hindenburg Research itself ceased operations in January 2025, further weakening the foundation of the allegations.
The Lokpal’s order brings formal closure to a months-long political and financial controversy that had triggered debates over transparency and conflict of interest in India’s regulatory ecosystem.
