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The Securities and Exchange Board of India (SEBI) chairperson, Madhabi Puri Buch, faced scrutiny and controversy after skipping a meeting of Parliament’s Public Accounts Committee (PAC) due to “personal exigencies.” The meeting, originally intended for Buch to address allegations of conflict of interest regarding the Adani Group, was subsequently postponed. The controversy unfolded against the backdrop of ongoing investigations into the Adani Group, stemming from allegations of financial misconduct and accounting irregularities.
The PAC meeting aimed to review the performance of regulatory bodies, including SEBI, following allegations against the Adani Group, which were first raised by American investment firm Hindenburg Research in August 2022. The firm accused the group of engaging in accounting fraud and money laundering using offshore tax havens. SEBI, under Madhabi Buch’s leadership, faced criticism for its handling of the investigation, which was ultimately deemed inconclusive by a Supreme Court-appointed panel. The Hindenburg report also specifically targeted Madhabi Puri Buch and her husband, Dhaval Buch, alleging they had hidden stakes in offshore entities linked to the Adani Group’s alleged financial misconduct.
Buch’s absence from the PAC meeting sparked immediate criticism, with some viewing it as a potential sign of contempt towards legislative bodies. The PAC chairperson, Congress leader KC Venugopal, stated that while they initially denied Buch’s request for exemption from appearing, they ultimately postponed the meeting due to her claimed personal exigencies. Despite acknowledging the potential for construing her absence as contempt, Venugopal cited her status as a woman in justifying the exemption, adding further fuel to the controversy. The BJP members of the PAC, however, accused Venugopal of political bias in setting the agenda of the meeting, highlighting the politicized nature of the situation.
The incident underscores the complex interplay between regulatory bodies, legislative oversight, and public scrutiny in India. The Adani Group controversy continues to generate significant public attention, raising questions about the effectiveness of regulatory oversight and the accountability of corporate entities. The PAC meeting was intended to provide a platform for examining the performance of SEBI, but Buch’s absence and the ensuing controversy have further highlighted the need for greater transparency and accountability within India’s regulatory framework.
Source: SEBI chief skips parliamentary panel meeting citing ‘personal exigencies’