Congress levels conflict of interest allegations against SEBI chief

Levelling fresh allegations, the Congress on Tuesday accused SEBI Chairperson Madhabi Puri Buch of “wilful concealment” of conflict of interest. In a media briefing, Congress spokesperson Pawan Khera said that contrary to SEBI chief’s claims that an advisory company owned by her became dormant once she took office, Agora Advisory Pvt Ltd “has been actively providing services and consultancy services.” The Congress alleged that Agora Advisory earned ₹2.95 crore from six companies which availed its consultancy services in 2016-17, 2019-2020 and 2023-24, which it termed as “conflict of interest”.

The Congress said that as of March 31, 2024, the SEBI Chairperson “owns 99 per cent stake” in Agora Advisory. The party alleged that Mahindra & Mahindra, Dr Reddy’s, Pidilite, ICICI, Sembcorp and Visu Leasing & Finance availed consultancy services from Agora Advisory between 2016-2024 for ₹2.95 crore. It also alleged that 88 per cent of this came from Mahindra & Mahindra. “Any income that Ms Madhabhi Buch’s Agora Advisory Pvt Ltd received from them (the six companies) amounts to conflict of interest and violates Section 5 of SEBI’s code on Conflict of Interest for Members of the Board 2008,” Congress stated.

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The party also alleged that Dhaval Buch, husband of SEBI Chairperson, received ₹4.78 crore as income in personal capacity from Mahindra & Mahindra Group between 2019-21 while she was adjudicating cases of the same group.

Meanwhile, Dr Reddy’s, Mahindra & Mahindra and Pidilite Industries have contested Congress’s claims.

‘False and misleading’

In a statement, Mahindra & Mahindra, termed these allegations as “false and misleading” in nature. “We categorically state that we have not, at any point, requested SEBI for any preferential treatment. We maintain the highest standards of corporate governance,” it added.

The conglomerate said it had hired Dhaval Buch in 2019, almost three years before Madhabi Puri Buch took over as SEBI Chairperson. Stating that he was hired for his expertise in supply chain and sourcing, the company added that “compensation has been specifically and only for his supply chain expertise and management acumen, based on his global experience at Unilever.” “None of the 5 SEBI orders or approvals referenced in the allegations are relevant,” the company stated in a BSE filing.

A Dr Reddy’s company spokesperson said that it had engaged services of Dhaval Buch of Agora Advisory Pvt Ltd for leadership coaching for a total remuneration of ₹6,58,000 from October 2020 to April 2021. “We routinely engage external coaches to enable significant role transitions of our leaders. The assignment started and ended well before Madhabi Buch’s term as SEBI Chairperson. Any suggestion that the Company was treated differently by SEBI as a result of this would be baseless and malafide. The Company has and continues to operate in compliance with all applicable laws,” it added.

Meanwhile, Pidilite Industries stated that it engages “with multiple partners and consultants who are renowned professionals in their respective fields.” It added that in FY19-20, it had engaged Agora Advisory’s Dhaval Buch, a globally renowned supply chain and procurement professional, for his services in these areas. “We further state that there have never been any enquiries or cases from SEBI vis-à-vis the Company,” it added.