Madhabi Puri Buch Cleared By Lokpal: What It Means For SEBI, Adani And Public Trust
The exoneration of former Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch by the Lokpal was not entirely unexpected. Allegations that she and her husband had used obscure offshore funds to benefit themselves and the Adani Group, though explosive, lacked verifiable substance.
Yet, the case and its context raise deeper concerns about regulatory credibility, political gamesmanship, and the ever-shifting sands of public perception. The allegations surfaced in the wake of the Hindenburg Research report, which caused a seismic jolt to Indian markets.
The report not only sent Adani Group shares tumbling, erasing billions in market capitalisation, but also laid bare the vulnerabilities of India’s financial regulatory system. In the spotlight was Buch, entrusted with safeguarding the integrity and robustness of India’s capital markets.
The fact that she and her family were, allegedly, involved in questionable dealings with the very corporate entity under scrutiny—Adani—cast a long shadow over SEBI’s impartiality.
While the accusations were unproven, the optics were troubling, prompting concerns about conflict of interest at the highest level of market oversight. In the Indian legal framework, the Lokpal is the sole authority competent to examine complaints of corruption or impropriety against the SEBI chief.
To its credit, the Lokpal took up the matter swiftly and gave it due seriousness. Its final ruling—that the complaint was based entirely on “presumptions and assumptions” with no “verifiable material”—effectively shut the case. Nonetheless, the process raised more questions than it answered.
The political backdrop cannot be ignored. One of the complaints came from Trinamool Congress MP Mahua Moitra, a vocal opposition figure. Politics was clearly at play, just as it was more than a decade ago during the agitation for the creation of the Lokpal.
That the case lost steam after Hindenburg Research abruptly shut shop in February only muddied the waters. The firm’s retreat was seen by many as a loss of credibility, an unwillingness to face the consequences of its claims.
Interestingly, Buch retained the government’s unwavering support throughout. In a more accountable system, she might have been asked to step aside pending investigation. Instead, she completed her term in February, undisturbed.
The case served as an unlikely revelation—that the Lokpal is functional, if not omnipotent. Once hailed as the silver bullet against corruption, the Lokpal has rarely delivered headline-grabbing justice. The fervour that once surrounded its creation, driven by the din over “presumptive losses” in telecom and coal, and later over the Commonwealth Games, has faded.
For many, the Lokpal is more a chimera than a champion. Buch may have emerged unscathed, but the larger system she once helmed remains fragile. Until allegations, however unfounded, can be addressed with transparency and without political interference, public trust in institutions like SEBI will continue to erode.
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