Lokpal Calls SEBI Chief, Complainants for Oral Hearing on Corruption Charges

New Delhi, Dec 24 (PTI) Anti-corruption ombudsman Lokpal has called SEBI chief Madhabi Puri Buch and also complainants, including TMC MP Mahua Moitra, for "oral hearing" next month in connection with corruption complaints being heard by it, alleging impropriety and conflict of interest on the basis of a Hindenburg Research report, according to an official order.

The Lokpal had on November 8 sought Buch's "explanation" on the complaints filed by Moitra, a Lok Sabha member, and two others.

Buch, the chairperson of capital markets regulator Securities and Exchange Board of India (SEBI), was asked to submit her response within four weeks.

Hearing the case, the Lokpal said the named RPS (respondent public servant) "has filed her response by way of affidavit sworn on 07.12.2024 in time, raising preliminary issues as well as giving explanation allegation-wise".

"Further, we deem it appropriate that the RPS as well as the complainants can be given opportunity of oral hearing to clarify their positions taken in the complaints or the affidavit, as the case may be," according to the December 19 order signed by Lokpal chairperson Justice AM Khanwilkar and five other members.

Accordingly, the Lokpal has asked the registry to issue notices to the RPS as well as the complainant(s) to avail of the opportunity of oral hearing on January 28.

"It will be open to the RPS as well as the complainant to authorise an advocate to espouse their cause, if they so desire at the time of oral hearing," the order said.

The Lokpal said "it is appropriate and in the interest of justice that the complainants are provided a copy of the affidavit and documents filed by the RPS by way of response to the respective complainants and the supplementary affidavits".

The anti-graft ombudsman asked its registry to forward a copy of Buch's affidavit and its accompaniments to the complainants in respective complaints.

"The complainants, however, shall ensure that confidentiality of the process and the contents of the affidavit is maintained...," the order said.

SEBI chief Buch and the complainants, "if (they) wish to rely on any reported decisions must file compilation(s) of such decisions duly paginated, well in advance and not later than 18.01.2025", it said and listed the matter for 11:30 am on January 28.

In an order dated September 20, the Lokpal had said the complaint by the parliamentarian, alleging impropriety and conflict of interest by the SEBI chief, "falls short" of persuading it to order any probe.

The anti-corruption ombudsman's observation came while hearing two complaints, including one by the TMC MP, filed on the basis of a report by the US-based "activist short-seller".

In its report, US-based short-seller Hindenburg Research alleged that Buch and her husband had stakes in obscure offshore funds used in the alleged money siphoning scandal involving the Adani Group.

They denied the allegations, saying the short-seller was attacking the capital markets regulator's credibility and attempting a character assassination.

The Adani Group had also termed Hindenburg Research's allegations malicious and manipulation of selective public information.

In a post on X, TMC MP Moitra on September 13 said she had filed a complaint against the SEBI chief with the Lokpal and asserted that the anti-graft ombudsman should forward it to the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI) for preliminary probe followed by a "full FIR enquiry".

Without mentioning the name of the complainant, the Lokpal in its September 20 order had also sought 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 August 10, 2024".

The matter was then posted for hearing on October 17 and later on November 8. A third complaint was also filed on October 14 by "yet another complainant, once again raising the same issues", according to the Lokpal's order of November 8.