The Lokpal asked complainants to submit “verified and credible” material to support corruption allegations against the SEBI chief. In an official order, complainants have been directed to file an affidavit within three weeks, detailing their efforts to verify the authenticity and credibility of their claims. The allegations stem from the recent Hindenburg Research report, published on August 10, 2023. The Lokpal aims to ensure that claims are substantiated with credible evidence before proceeding further.
New Delhi: The Lokpal, chaired by former Supreme Court judge AM Khanwilkar, requested that complainants provide “verified credible” evidence to substantiate corruption allegations against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI).
After reviewing the complaints, the panel expressed the view that the complaint seemed “rushed in” after being downloaded from the Hindenburg report found online.
The Lokpal’s order instructed complainants to submit an affidavit within three weeks, detailing their efforts to verify the “authenticity and credibility” of the claims made in the Hindenburg Research report, published on August 10, 2023. While the 11-page order redacted the names of both the complainants and the subject, it is widely known that Trinamool Congress MP Mahua Moitra filed the complaint against SEBI’s Buch.
Moitra alleged “quid pro quo arrangements which potentially threaten national interests,” based on claims by Hindenburg Research that Buch and her husband had investments in offshore funds connected to the Adani Group, while SEBI was investigating complaints against the conglomerate. Allegations suggest that this connection may explain why the SEBI chief is perceived as lenient toward the Adani Group.
In its order, the Lokpal asked the complainant to clarify how private investments made by a public servant, prior to assuming office, would constitute an offense under the Prevention of Corruption Act, 1988.
The Lokpal also sought an explanation on how activities occurring before the specified period could be investigated. Complainants have been directed to present verified, credible material and respond to all the Lokpal’s questions by the next hearing on October 17.
The Lokpal stated,
“If researched evidence is not provided, we may treat the complaints in line with the Supreme Court judgment dismissing the plea for a SIT/CBI probe into SEBI affairs,”,
It further added,
“We have reasons to believe the complainant made no effort to verify the contents of the report or gather credible material.”
The Lokpal clarified that the observations made in relation to the complaint should not be interpreted as expressing any opinion on the matter.
The order stated,
“This direction is merely a procedural order, issued to assess the tenability of the complaint and to form a prima facie view, as required under Section 20 of the Lokpal Act, 2013, in this particular situation,”