The Congress party has alleged that Mahindra and Mahindra, ICICI, Dr Reddy’s, Pidilite, Sembcorp and Visu Leasing and Finance availed consultancy services from Agora Advisory when Madhabi Puri Buch was serving as a whole-time director of Securities and Exchange Board of India (SEBI). Mahindra called the allegations baseless.
Chairman, Media and Publicity Department of AICC, Pawan Khera, said that availing the services of Agora when Buch was a whole-time director of SEBI amounts to “conflict of interest and violates Section 5 of SEBI’s Code on Conflict of Interest for Members of the Board (2008)”.
It amounts to conflict of interest as Buch held 99 per cent shares in the company, as initially revealed by Hindenburg Research in its latest report. However, in her response Buch said that the consulting firms – in Singapore and India – set up by her became immediately dormant when she took up her appointment with SEBI. Congress alleged that Buch still owns 99 per cent of the company that has been actively providing advisory and consultancy services.
“In 2016-17, 2019-2020, to as late as 2023-24, as a whole-time member of SEBI and later as its Chairperson, Ms. Madhabi P. Buch received a total of Rs 2.95 crore through Agora Advisory Private Limited. (Exception years : 2017-2018 and 2018-2019),” Khera said.
In its latest allegations, Congress stated that out of the Rs 2.95 crore received by Agora for consultancy, Rs 2.59 crore came from Mahindra and Mahindra Group, accounting for 88 per cent.
Congress said that Madhabi Puri Buch’s husband Dhaval Buch also received Rs 4.78 crore as income in personal capacity from Mahindra and Mahindra, over and above the Rs 2.95 crore received by Agora. It pointed out that Dhaval Buch’s income was received at a time when Madhabi Puri Buch was the whole-time director of SEBI, and adjudicating cases of Mahindra.
Mahindra Group called the allegations misleading in nature, and added that Dhaval Buch was hired in 2019 specifically for his expertise in supply chain and sourcing after he had retired as Unilever's Global Chief Procurement Officer.
"He has spent most of his time at Bristlecone, a subsidiary which is a supply chain consulting company. Mr. Buch is currently on the Board of Bristlecone. He joined Mahindra Group almost 3 years before Ms. Madhabi Puri Buch was appointed as SEBI Chairperson. Compensation has been specifically and only for Mr. Buch’s supply chain expertise and management acumen, based on his global experience at Unilever. We categorically state that we have not at any point requested SEBI for any preferential treatment. We maintain the highest standards of corporate governance. We consider these allegations false and misleading in nature," the company responded to the allegations.
The party questioned if Prime Minister Narendra Modi is aware that Buch owns 99 per cent of Agora, and is receiving “significant fees” from the listed entities. It questioned the kind of services Agora provides and whether it is financial in nature.
Congress asked if the prime minister was aware of Madhabi Puri Buch’s ties to a conflicted entity, and that her spouse is receiving substantial income from Mahindra after his retirement.