In his latest volley against SEBI chairperson Madhabi Puri Buch, Congress leader Pawan Khera on September 6 alleged that Buch and her husband received rental income from a company affiliated Wockhardt Ltd, a firm that SEBI has been involved with in multiple cases.
Addressing a press conference, Congress leader Pawan Khera said, “This is not just conflict of interest, but a case of out-and-out corruption. Is it ethical, is it legal?”
Khera, while addressing a press conference, alleged that Buch and her husband own a property in Mumbai, which was given on rent to a company called Carol Info Services Ltd, and is a part of Wockhardt Ltd.
He alleged that between 2018 and 2024, Buch -- as a whole-time member and later chairperson of the Securities and Exchange Board of India (SEBI) -- had been receiving rental income amounting to Rs 2.16 crore from Carol Info Services Limited, which is a clear conflict of interest and amounts to corruption.
Giving a break-up of the rent received by Buch, Khera said, “In 2018-19, the rent for this property was Rs 7 lakh. In 2019-20, it increased to 36 lakh. In 2023-24, she received a rent of Rs 46,05,000 from the firm.”
“Madhabi Puri Buch is the chairperson of the same organisation (SEBI) which has complaints against Wockhardt before it. There was a case of insider trading too, her organisation (SEBI) dealt with insider trading case of Wockhardt too. This is a conflict of interest, I would call it corruption. This is not just conflict of interest, this is out and out corruption,” Khera claimed.
Denying the allegations, Wockhardt Limited said: "It has come to our attention there are certain allegations pertaining to payment of rent by Carol Info Services Limited and its connection with certain orders passed by SEBI in relation to the company. In this regard, we categorically deny these allegations and state that these allegations are completely baseless and misleading. The company has acted and continues to act in compliance with all applicable laws."
The latest volley against the SEBI chief by the Congress comes days after it accused Buch of holding an office of profit at ICICI Bank and receiving an income of Rs 16.80 crore between 2017 and 2024 after she became a full-time member of the market regulator.
ICICI Bank had refuted the claims and said that it did not pay any salary or granted ESOPs to Buch after her retirement on October 31, 2013, as alleged by Congress.
The Parliament's Public Accounts Committee (PAC) has decided to review the performance of regulatory bodies established by Acts of Parliament. According to sources, PAC will review the performance of regulatory bodies, including SEBI. PAC might summon the SEBI Chairperson to review the performance of the regulatory body. The next PAC meeting is on September 10 but she is unlikely to be called then.