Lokpal asks complainants to bring ‘verified credible’ material to back up corruption claims against SEBI chief

The Lokpal headed by former Supreme Court judge AM Khanwilkar has asked complainants to bring “verified credible” material to back up their corruption claims against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI). 

After perusing the complaints, the panel is of the view that complaint was “rushed in” after downloading from the Hindenburg report from the internet. 

The order directed the complainants to file an affidavit within three weeks on the “details regarding the efforts made by the respective complainant to verify the authenticity and credibility of the claims in the recent report of Hindenburg Research published on 10.08.202”. 

Although, the 11-page order redacted the names of both the complainants and the subject of the complaint it is public knowledge that Trinamool Congress MP Mahua Moitra had filed a complaint with the Lokpal against SEBI’s Buch, alleging “quid pro quo arrangements which potentially threaten national interests”.  

The complaints were based on allegations raised by US-based Hindenburg Research that Buch and her husband had investments in offshore funds, which are linked to Adani group of companies while the SEBI was probing the complaints against the Adani group. Its being alleged that this is the precise reason why SEBI chief is soft on Adani group. 

The Lokpal in its order asked complainant to clarify as to how the act of private investments made by a public servant that too before taking over the office would attract the offence of corruption under the Prevention of Corruption Act, 1988. 

Additionally, it also sought explanation on how the activities prior to the period specified be reckoned and inquired/investigated into by the Lokpal. 

The complainants have been asked to come with verified credible material and answer to all questions asked by Lokpal by October 17 next date of hearing. 

If researched evidence not given, we may treat the complaints as per the SC judgment (dismissing plea for a SIT/CBI probe or meddle in SEBI affairs), the Lokpal order said, adding, “We have reasons to believe complainant made no attempts to verify contents of report or collect credible material.” 

“We make it clear that the observations made hitherto in the concerned complaint and/or in the totality, may not be construed as an expression of opinion by the Lokpal one way or the other. This direction is only a procedural order, issued for testing the question of tenability of the concerned complaint and to record a prima facie view as required under section 20 of the (Lokpal) Act of 2013, in the peculiar situation,” the order stated.