Latest news with #Actof1988
The Hindu
28-05-2025
- Business
- The Hindu
Lokpal gives clean chit to Madhabi Puri Buch in Hindenburg case
The Lokpal on Wednesday (May 27, 2025) disposed of all three complaints against Madhabi Puri Buch, former Chairperson of Securities and Exchange Board of India (SEBI), in the Hindenburg case, granting a major relief for Ms. Buch as well as the market regulator she once headed. A full bench of the Lokpal headed by Chairperson Justice A.M. Khanwilkar delivered the judgment. 'We have concluded that the allegations in the complaints are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences in Part Ill of the Act of 1988, so as to direct an investigation therefor. Accordingly, these complaints are disposed of,' the bench said in its order. The Act here refers to the Prevention of Corruption Act, 1988. Referring to Hindenburg report, it said that the complaints were essentially founded on the report 'by a known short seller trader whose focus was to expose or corner Adani Group of Companies'. 'As noted in our order dated 20.09.2024, that report by itself cannot be made the sole basis to escalate action against the RPS [Ms. Buch],' the order stated. 'The complainants, being conscious of this position, advisedly attempted to articulate allegations independent of the stated report but the analysis of the allegations by us ended with a finding that the same are untenable, unsubstantiated and bordering on frivolity,' the order said. 'The scope of inquiry at this stage is not to verify the veracity or otherwise of the information received but only to ascertain whether the information reveals any cognizable offence,' the Lokpal observed. Stating that this being a case of corruption alleged against a public servant, the bench added they had to reckon the plea or the comment offered by the concerned public servant with care and circumspection. As per the order, the subject matter of these complaints was identical, though filed by separate complainants. Five allegations Broadly, there are five allegations against Ms. Buch: She and her husband invested a substantial amount in a fund linked to investments in Adani Group of companies, the group facing scrutiny before SEBI for stock price manipulations. She failed to disclose the investments in obscure funds to the Board of SEBI and the Supreme Court-appointed Expert Committee. She gained quid pro quo in the garb of consultancy services fees by AAPL, a firm in which she had 99% of ownership, and through her husband Dhaval Buch, from entities such as the Mahindra & Mahindra Group and Blackstone Inc., firms having regulatory cases pending before SEBI when she was a wholetime Member or Chairperson of SEBI. She gained quid pro quo in the garb of rental income from Carol Info Services Private Limited, allegedly linked to Wockhardt Ltd, a firm under investigation by SEBI for insider trading. She gained undue advantage by selling her ESOPs (employee stock ownership plans) from ICICI Bank over a period of five years from 2017 — though the same had been vested in RPS in 2013 — during which period ICICI Bank had regulatory issues pending before SEBI and any adverse action against it would have influenced the market price of the ESOPs of Ms. Buch. She made a pretence of recusal from matters of M&M Group and Blackstone Inc., but nothing prevented her from influencing the other wholetime Members and the Board of SEBI for a favourable outcome of cases pending and under investigation by the regulator against the entities, and which she did owing to her official position. Ms. Buch had denied all the allegations. The Hindu had contacted her for a comment on the Lokpal order and her comment is awaited. 'Unnecessary to analyse reported decisions' 'We may also make it amply clear that for the findings reached in this decision on the relevant facts, it is unnecessary to dwell upon the purport of Section 50 and 51 of the Act of 2013 for action taken in good faith. That aspect has already been implicitly answered in favour of the RPS [Ms. Buch],' the order said. The Act here refers to the Lokpal and Lokayuktas Act, 2013. 'The parties have relied upon reported decisions. However, we do not deem it necessary to burden this order by analysing the same, as the factual matters have been analysed and dealt with in this order keeping in mind the ingredients of the offences under Act of 1988 invoked by the complainants. We have unreservedly answered the same in favour of the RPS [Ms. Buch],' it pointed out.
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Business Standard
28-05-2025
- Business
- Business Standard
Lokpal dismisses all complaints against former Sebi chief Madhabi Puri Buch
Anti-corruption body, Lokpal, has dismissed all complaints made against Madhabi Puri Buch, the former chairperson of the Securities and Exchange Board of India (Sebi), in connection with allegations linked to the Hindenburg Research report. The Lokpal stated there was no credible evidence to justify any investigation against Buch. "... We have concluded that the allegations in the complaint(s) are more based on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences in Part III of the Act of 1988, so as to direct an investigation therefore... accordingly, these complaints are disposed of," the order stated. The order further noted: "The complainant(s), being conscious of this position, advisedly attempted to articulate allegations independent of the stated report, but the analysis of the allegations by us ended with a finding that the same are untenable, unsubstantiated and bordering on frivolity." The decision was issued on May 28 by a six-member bench led by Lokpal chairperson Justice AM Khanwilkar. Five key allegations examined While reviewing the case, the Lokpal examined five main allegations made against Buch: Investments made by Buch and her husband Dhaval Buch in a fund reportedly linked to the Adani Group. Receipt of consultancy fees from companies such as Mahindra & Mahindra and Blackstone Inc., allegedly in return for favours. Alleged rental income from Wockhardt viewed as a quid pro quo. Gains from selling ICICI Bank ESOPs between 2017 and 2024. Claims of pretending to recuse herself from matters involving M&M and Blackstone while still being involved. The Lokpal found no substance in any of the claims. "The complainant(s), by making such unverified and flimsy or fragile allegations, only to sensationalise or so to say politicise the matter, has inevitably trivialised the process before the Lokpal. It is nothing short of vexatious proceedings actionable under Section 46 of the Act of 2013. We say no more," the order noted. Complaints linked to Hindenburg report The complaints, including one from Trinamool Congress MP Mahua Moitra, were based largely on a report by Hindenburg Research, which had alleged that Buch and her husband were involved in offshore funds tied to the Adani Group. The Lokpal clarified that the report alone could not form the basis for action. "The complainant(s), being conscious of this position, advisedly attempted to articulate allegations independent of the stated report, but the analysis of the allegations by us ended with a finding that the same are untenable, unsubstantiated and bordering on frivolity," the order said. Buch and her husband had denied the claims, saying the accusations were an attempt to tarnish her image and undermine the credibility of Sebi. The Adani Group had also called the report malicious and accused it of manipulating selective public information. Formal proceedings and responses Lokpal had first asked Buch to respond to the complaints on November 8 last year. She submitted her affidavit on December 7, 2024, responding to each allegation and raising preliminary objections. An oral hearing was held on December 19, 2024, where both sides were allowed to present their arguments. Additional written submissions were later made. Oral arguments were heard again on April 9, 2025. According to the order: "The advocate for the complainant in the second complaint made exhaustive oral submissions. The proxy counsel appearing for the complainant in the third complaint opted to file written submissions. Although the complainant in the third complaint has been represented by an advocate, neither the complainant nor the advocate appeared to make oral submissions." Buch was represented by a senior advocate who gave a detailed argument in her defence. After hearing both sides, the bench allowed more time for written submissions before reaching its decision. Allegations deemed speculative The Lokpal ultimately found the allegations to be speculative and lacking credible support. "... what the complainant(s) are inviting us to do is to conduct a roving inquiry into the allegations which are unfounded, speculative and bordering on frivolity," the order said. Madhabi Puri Buch served as Sebi chief from March 2, 2022, until the end of her term on February 28, 2025. The Lokpal's decision brings closure to the allegations made against her, reaffirming that there was no reliable evidence to support the claims.
Hans India
28-05-2025
- Business
- Hans India
Lokpal gives clean chit to former SEBI chief Madhabi Puri Buch in Hindenburg allegations case
New Delhi: The Lokpal on Wednesday gave a clean chit to former SEBI Chairperson Madhabi Puri Buch over the allegations levelled against her in the issue of US short-seller Hindenburg Research. The anti-corruption body, headed by former Supreme Court judge, Justice A.M. Khanwilkar (retd), stated, in an order dated May 28, that there is no material evidence to order an investigation against Buch. "We have concluded that the allegations in the Complaint(s) are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences in Part III of the (Prevention of Corruption) Act of 1988, so as to direct an investigation.... accordingly, these complaints are disposed of," the Lokpal's order said. "The Complainant(s) being conscious of this position advisedly attempted to articulate allegations independent of the stated report but the analysis of the allegations by us, ended with a finding that the same are untenable, unsubstantiated and bordering on frivolity," the order further stated. The Lokpal examined five main allegations made against Buch. These include a quid pro quo in the garb of consultancy services fees from entities like M&M and Blackstone Inc., and a quid pro quo from Wockhardt in the garb of rental income. There was also an allegation of undue advantage gained by Buch through the sale of ICICI Bank ESOPs over a period of five years between 2017 and 2024 that has been dismissed. Another allegation in which the Lokpal found no evidence relates to the pretence of recusal from matters related to M&M and Blackstone Inc. The Lokpal has come down heavily against the complainants, observing that the complainants did not submit any credible evidence in the matter while attempting to make the authority go into a roving inquiry. "What the Complainant(s) are inviting us to do is to conduct a roving inquiry into the allegations which are unfounded, speculative and bordering on frivolity," the order states. "The Complainant(s) by making such unverified and flimsy or fragile inevitably trivialised the process before the Lokpal. It is nothing short of vexatious proceedings actionable under Section 46 of the Act of 2013. We say no more," the order further stated. Following the allegations that surfaced in August 2024, then Securities and Exchange Board of India (SEBI) Chairperson Buch and her husband Dhaval Buch had strongly denied the charges, calling it a 'character assassination attempt' because an Enforcement action and show cause notice was issued to the Nate Anderson-led company the previous month. According to the joint statement issued by the couple, 'In the context of allegations made in the Hindenburg Report dated August 10, 2024, against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report'. 'The same are devoid of any truth. Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them,' read the joint statement. Meanwhile, Hindenburg Research has itself shut down operations amid major short-selling controversies in the US that brought the company under a cloud.
Washington Post
04-04-2025
- Business
- Washington Post
D.C.-area job losses happening faster than during covid, data suggests
Job losses in the D.C. area appear to be steeper than at the same point in 2020, when the coronavirus pandemic was ravaging the economy, a Washington Post analysis of available layoff data shows, though the full impacts of the Trump administration's federal spending cuts are still not known. The data comes from notices filed by employers under the Worker Adjustment and Retraining Notification (WARN) Act of 1988, which requires large employers to issue these notices before mass layoffs or plant closures. The WARN data offers only a partial view of the region's labor market, as it typically applies just to private-sector employers, though this dataset also includes more than 2,000 job cuts made by the U.S. Department of Health and Human Services in Maryland.
