Among the series of allegations levelled by the Indian National Congress against Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch, one that stands out is the claim that the Sebi chief has rented out a tony central Mumbai apartment, one that she jointly owns with spouse Dhaval Buch, to a firm linked to multinational pharmaceutical and biotechnology company Wockhardt.
When India Today visited Vivarea, a luxury apartment complex in central Mumbai’s Mahalaxmi area, staff at the high-rise claimed the apartment, Number 102 in Tower Wing D, was occupied by Wockhardt Hospitals Managing Director Zahabiya Khorakiwala and Wockhardt Chairman Habil Khorakiwala.
Congress spokesperson Pawan Khera claimed on September 6 that Buch and her husband owned this apartment and had rented it out in 2018-19 to Carol Info Services Ltd, a subsidiary of Khorakiwala Holdings and Investments Private Ltd (KHIPL).
The directors of KHIPL are Habil Fakhruddin Khorakiwala, Murtaza Habil Khorakiwala and Nafisa Habil Khorakiwala. Habil, the founder of the Wockhardt group, is married to Nafisa. He has three children: Huzaifa, Murtaza, and Zahabiya.
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 Rs 36 lakh. In 2023-24, she received a rent of Rs 46 lakh from the firm”.
In total, the Congress claimed, the Buch’s had received over Rs 2 crore as rent for the flat. Khera alleged this occurred at a time when Sebi was investigating Wockhardt Ltd for alleged insider trading and that this hints towards a “quid pro quo”.
The apartment was leased in FY20 when the probe had not even started. The first showcause notice to Wockhardt was issued on September 05, 2022 by SEBI.
Also, while the average annual rise in rent is 8-10 per cent, Year 1 rise was 8.2 per cent, Year 2 rise was 7.2 per cent, Year 3 rise was 4.2 per cent and Year 4 rise was 3.7 per cent as per Congress figures.
Denying the Congress allegations the very same day, a Wockhardt Ltd regulatory filing to the stock exchanges said, “It has come to our attention that there are certain allegations pertaining to payment of rent by Carol Info Services Ltd 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.”
No comment, says Wockhardt
Subsequently, Business Today reached out to a Wockhardt Group spokesperson to seek a response on what use this luxury apartment has been put to by Carol Info Services, who its occupants were, whether indeed Zahabiya Khorakiwala and Habil Khorakiwala had or were residing in it, and what the lease period of this property was. In reply, a spokesperson for the Wockhardt Group said, “No comment.”
BT also reached out to Habil Khorakiwala and daughter Zahabiya for their comments on this issue and will update this article with the response as it becomes available.
Defamatory, false and vexatious, says Buch
Responding to the claims, Madhabi Puri Buch said that the assertion that the rental rates were “off market” are patently false. “The property was leased out in the normal course. As it turned out subsequently, the lessee happened to be an associate of Wockhardt, a listed company which had come under investigation. Madhabi has not dealt with any files related to Wockhardt,” said the statement, adding that “even an allegation of conflict is not only defamatory, false and vexatious, but is clearly malicious and motivated”.
Buch added that all investigations are handled in accordance with established procedures and accordingly no investigation files go to the Chairperson.
“It is highlighted that the rental agreement for the property in question was concluded in accordance with standard market practices and this property jointly owned by Madhabi and Dhaval is leased and the rental from the same is declared and tax paid accordingly. 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” are patently false,” said Buch, adding that all necessary disclosures were made to SEBI at the time of her appointment as a whole-time director in 2017.
Home of the Ultra-Rich
In January 2024 -- months before these allegations against the Sebi Chairperson -- the luxury apartment complex Vivarea, developed by Mumbai-based real estate player K. Raheja Group, was in the news for very different reasons. A board member at a leading consumer goods company had purchased two sea-view luxury apartments there for about Rs 47 crore.
Months after that purchase, promoters of a Delhi-based design consultancy and architecture firm also joined the list. Investing Rs 155 crore, the group’s promoters picked up eight sea-view apartments in Vivarea. The luxury apartment complex has a host of other corporate honchos and entrepreneur owners as well.
Located off the Mahalaxmi railway station, Vivarea is a luxury residential project spread across 14 acres of land and comprises of five towers. It has three, four-bedroom apartments, many of which provide a majestic view of the Arabian Sea and the Mumbai skyline. Real estate portals list prices of flats here from Rs 15 crore and going up to well over Rs 50 crore. Brokers say rents in the building are high, with a three bedroom apartment, measuring around 2,000 sq. ft., renting for Rs 5 lakh a month, going up to Rs 7.5-8 lakh for a 3,000 sq. ft. four bedroom apartment.