SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, on Friday issued a detailed clarification addressing allegations surrounding the rental income from their jointly-owned luxury apartment in central Mumbai.
The controversy erupted after claims surfaced that the property had been leased to a company linked to Wockhardt, a pharmaceutical giant under SEBI investigation, leading to speculations of a possible conflict of interest.
In a statement, the Buchs said the property was leased out "in the normal course" and that the lessee, Carol Info Services Ltd, turned out to be associated with Wockhardt. The statement said Madhabi Puri Buch has "not dealt with any files related to Wockhardt" during her tenure at SEBI, adding that investigations and surveillance are handled by designated officials under the well-defined Delegation of Powers.
"Even an allegation of conflict is not only defamatory, false, and vexatious but is clearly malicious and motivated," the couple asserted.
The statement further clarified that the rental agreement was concluded as per standard market practices, with rental income declared and taxes paid. "A simple internet search and analysis would show that the rental income from the property was completely in line with market rates. The assertion that the rental rates were 'off-market' is patently false," the couple added, underscoring that all necessary disclosures had been made to SEBI since Madhabi’s appointment as a Whole-Time Member in 2017.
The controversy gained traction after Congress spokesperson Pawan Khera alleged that the Buchs received over ₹2 crore in rent for the apartment from 2018 to 2024, during which SEBI was investigating Wockhardt for insider trading. Khera claimed the rental arrangement hinted at a possible “quid pro quo.”
Business Today (BT) reported that the luxury apartment in Mumbai’s Vivarea complex had been occupied by Wockhardt executives, including Zahabiya Khorakiwala, Managing Director of Wockhardt Hospitals, and Habil Khorakiwala, Wockhardt's Chairman. The Congress claimed that the rental income spiked from ₹7 lakh in 2018-19 to ₹46 lakh in 2023-24, raising questions about the timing of SEBI's investigation into Wockhardt.
In response to these allegations, Wockhardt issued a statement categorically denying any wrongdoing. "These allegations are completely baseless and misleading. The company has acted and continues to act in compliance with all applicable laws," Wockhardt said in its regulatory filing.
The allegations come months after Vivarea, the luxury complex, made headlines for high-profile property transactions, further fueling media attention on the issue.