After Hindenburg accused SEBI (Securities and Exchange Board of India) chairperson Madhabi Puri Buch and her husband, Dhaval Buch, of having stakes in Adani Group’s funds, the very firm SEBI was tasked to look into for market manipulation and insider trading, the couple has come out with a detailed statement, claiming that Hindenburg’s allegations are baseless.

They described the insinuation by the firm as “malicious and motivated”.

Madhabi and Dhaval claimed that they possess a financial and banking career spanning more than two decades, and have accrued their savings “through their salaries, bonuses and stock options”.

They claimed to have a significant portion of their career based in Singapore and pointed out their respective portfolios.

The statement refutes Hindenburg’s claim of investing in a fund by arguing that the transaction dates back to 2015 when they were both “private citizens living in Singapore and almost 2 years before Madhabi joined SEBI”.

Their decision to invest in this fund was reasoned in the statement as because of the Chief Investment Officer (CIO), Anil Ahuja, who was Dhaval’s close acquaintance and spanned a resourceful investing career.

Further, they claim that they redeemed their investment in the fund when Ahuja left his position in 2018. Their statement argues that at no point in time did the fund invest in any bond, equity, or derivative of any Adani Group company, and quotes Ahuja for this claim.

Dhaval took up Blackstone Private Equity’s senior advisor position ahead of Madhabi’s appointment as SEBI chairperson, and on account of his merit, reads the statement. It claims that Dhaval has not been associated with the Real Estate wing of Blackstone. Moreover, Blackstone was also added to Madhabi’s recusal list after Dhaval’s appointment.

The couple also argues that SEBI has been issuing ‘Ease of Doing Business’ circulars to several entities which are approved by its entire board, refuting the claims that the matters related to the Real Estate Investment Trusts (REIT) industry were favoured to any specific party.

Upon the allegations levelled at Madhabi’s two consulting companies, the couple argued that they were set up during Madhabi’s stay in Singapore, and “became immediately dormant on her appointment with SEBI”, against whom everything is claimed to have been disclosed.

After 2019, Dhaval started his own consultancy practice through these companies, and they made money purely through his business operations, denying all the links of its business health with Madhabi’s current government salary.

The shift of the shareholding to Dhaval of the firm’s Singapore entity was also disclosed to SEBI, as well as concerned authorities, claims the statement.

Opposition hounds Madhabi-Dhaval on their claims

Madhabi and Dhaval, however, have found themselves on the receiving end of serious political outrage after she denied the allegations today.

The Congress party was quick to call out SEBI’s conflict of interest in investigating the Adani Group.

Thereafter, Trinamool Congress MP from Krishnagar, Mahua Moitra, sought the immediate suspension of the SEBI chairperson. Moitra took to X and raised serious questions before the SEBI chairperson.

Moitra argued that their acquaintance Anil Ahuja was a full-time director with Adani Enterprises/Adani Power, and the fund they invested was used by Vinod Adani to siphone off monies. She questioned whether they ceased to have a stake in the fund or not.

Moitra also refuted the string of claims made by Ahuja and demanded verification of his words.

She also claims collusion between Blackstone and the board as the statement admits that Dhaval was appointed after Madhabi became a full-time member, alongside SEBI approving Blackstone’s REIT.

She further points out a contradiction in the couple’s claims. The statement reads that both the consulting entities became dormant when Madhabi joined SEBI, but it further claims that Dhaval used those entities. Moitra demanded a disclosure of all the people giving business to those entities.

Moitra also posted a 12-pointer list of questions she demands to be answered in the public domain by the SEBI chairperson and her husband.

Dear Chairperson @SEBI_India we would like these questions answered in your detailed clarification:

1. Did you invest in IPEplus Fund 1 in 2015 being a part of Global Development Opportunities Fund, a part of Global Opportunities Fund used by Vinod Adani?
2. When did you cease…

— Mahua Moitra (@MahuaMoitra) August 11, 2024