Dhaval Buch, Mahindra & Mahindra, Dr. Reddy's, Pidilite Respond to Congress Allegations

New Delhi, Sep 10 (PTI) Mahindra & Mahindra, Dr. Reddy's Laboratories, and Pidilite Industries on Tuesday said they had hired the services of Dhaval Buch for his expertise after the Congress accused his wife and Sebi Chairperson Madhabi Puri Buch of conflict of interest.

The Congress on Tuesday claimed that Sebi Chairperson Buch had a 99 per cent stake in a firm when it provided consultancy services to the Mahindra and Mahindra Group and her husband received Rs 4.78 crore as income from the conglomerate while she was adjudicating cases of the same group.

Congress general secretary in-charge communications Jairam Ramesh asked whether Prime Minister Narendra Modi was aware that Buch owns 99 per cent of Agora Advisory Pvt Ltd and is receiving significant fees from listed entities.

The list of companies that availed consultancy service from Agora Advisory Pvt Ltd -- Mahindra and Mahindra Ltd, Dr. Reddy's, Pidilite, ICICI, Sembcorp and Visu Leasing and Finance, the Congress said.

In a regulatory filing, Mahindra & Mahindra Ltd refuted allegations of conflict of interest on payments made to Dhaval Buch, describing the charges as "false and misleading in nature".

The company said Dhaval Buch joined Mahindra Group almost three years before Madhabi Buch was appointed the 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," the company asserted.

Referring to the Congress' allegations on approvals by Sebi to the company, it said, "None of the five Sebi orders or approvals referenced in the allegations are relevant."

Three of the five approvals or orders of Sebi do not pertain to the company or any of its subsidiaries, it said.

Responding to the allegations, Dr. Reddy's Laboratories said it engaged Dhaval Buch of Agora Advisory Pvt Ltd for leadership coaching for a total remuneration of Rs 6.58 lakh for a limited period from October 2020 to April 2021.

"We routinely engage external coaches to enable significant role transitions of our leaders. Mr. Dhaval Buch's work in India and globally for Unilever was well-suited to coach the identified leader in our Company, and the remuneration paid to Mr. Buch was in line with that of other coaches," Dr. Reddy's said.

The assignment started and ended well before Madhabi Buch's term as Sebi Chairperson, it said, adding, "any suggestion that the Company was treated differently by Sebi as a result of this would be baseless and malafide. The company has and continues to operate in compliance with all applicable laws".

Pidilite Industries, too, clarified that the company engages with multiple partners and consultants who are renowned professionals in their respective fields.

"As part of its routine requirements, the company in FY 2019-20 had engaged Agora Advisory's Mr Dhaval Buch, a globally renowned supply chain and procurement professional, for his services in these areas," it said in a filing to the stock exchanges.

There have never been any enquiries or cases from Sebi vis-à-vis the company, it added.

At a press conference at the AICC headquarters here, Congress' media and publicity department head Pawan Khera said the recent Hindenburg report had alleged that Sebi Chairperson Buch held 99 per cent shares in a company called 'Agora Advisory Pvt Ltd'.

Agora Advisory is a private entity incorporated on May 7, 2013 and it claims to provide various types of advisory or consultancy services, Khera said.