India’s anti-corruption ombudsman Lokpal on November 8 sought an explanation from SEBI chairman Madhabi Puri Buch in response to allegations of impropriety and conflict of interest. The complaints were filed by a Lok Sabha member and two others based on a report by US-based short seller Hindenburg Research, according to an official order.

The Lokpal clarified that its directive is purely procedural and not an expression of opinion on the merits of the allegations. The anti-corruption body gave Buch four weeks to submit his response.

Business today could not independently verify the report.

The order, signed by Lokpal Chairman Justice AM Khanwilkar and five other members, said, “We consider it appropriate to ask the said RPS (respondent public servant) to give an explanation regarding the allegations leveled against her in the respective complaints.”

The order further explained that this step is part of the procedure required under Section 20 of the Lokpal Act, which requires Buch to be given an opportunity to respond before the court decides whether there is a prima facie case for investigation.

Buch was asked to respond to all three complaints and the Lokpal indicated that it may send a consolidated explanation to avoid repetition. “This order is not an expression of our opinion on any matter at hand, in any event. It is simply a procedural directive,” the order reiterated.

The Lokpal order was signed by Justices L Narayana Swamy, Sanjay Yadav and Ritu Raj Awasthi and members Sushil Chandra and Ajay Tirkey. It also specified that Buch’s response must be filed within four weeks of receiving the order. The matter is scheduled for further review on December 19.

Earlier, in an order dated September 20, the Lokpal had said that a complaint by the Lok Sabha member about Buch’s alleged conflict of interest and impropriety did not provide sufficient grounds for a full investigation.

The complaint, along with two others, was based on a report by Hindenburg Research that accused Buch and her husband of holding stakes in offshore funds linked to the alleged money laundering scandal involving the Adani Group. Both Buch and her husband have denied the allegations, accusing Hindenburg Research of trying to discredit the capital market regulator.

In his complaint, Trinamool Congress MP Mahua Moitra, who filed one of the complaints on September 13, asked the Lokpal to refer the case to the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI) for a preliminary investigation.

On 20 September, the Lokpal also sought details from the complainants regarding their efforts to verify the authenticity of the Hindenburg Research report dated 10 August 2024. The matter was fixed for hearing on 17 October and later rescheduled to 8 November.

On October 17, the Lokpal noted that the applicants had filed affidavits to its earlier order. Additionally, a third complaint was filed on October 14, reiterating similar allegations.

(With inputs from PTI)