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The pharmaceutical company Dr Reddy's Laboratories has found itself at the center of a controversy involving potential conflicts of interest related to the Securities and Exchange Board of India (SEBI) chief, Madhabi Puri Buch. Congress, the Indian National Congress party, alleged that Buch's husband, Dhaval Buch, received consultancy fees from listed companies, including Dr Reddy's, through his firm Agora Advisory Pvt Ltd. This sparked concerns about potential conflicts of interest for Buch in her role as SEBI chairperson.
Dr Reddy's, however, swiftly refuted these allegations. In a stock filing, the company stated that it had indeed engaged the services of Dhaval Buch for leadership coaching between October 2020 and April 2021. However, they clarified that the total remuneration paid to Buch was a modest Rs. 6,58,000 and that the engagement ended well before Buch's appointment as SEBI chairperson. They emphasized that the selection of Dhaval Buch was based on his extensive experience at Unilever, both in India and globally, making him well-suited for the coaching role. Furthermore, the company asserted that the fees paid to Buch were in line with the remuneration of other coaches they had engaged in the past.
Dr Reddy's firmly dismissed any suggestion that the company received preferential treatment from SEBI as a result of its engagement with Dhaval Buch. The company labeled such suggestions as baseless and malicious. Notably, Congress did not present any concrete evidence to support its allegations, leaving the matter open to interpretation and raising questions about the veracity of its claims. This episode highlights the intricate relationship between business, government, and ethical considerations. While the involvement of family members of public officials in business dealings can raise legitimate concerns about potential conflicts of interest, it is crucial to assess these allegations with due diligence and avoid hasty conclusions.