Hitting bank on the report by US-based research firm, Hindenburg, SEBI chief Madhabi Puri Buch and her husband Dhaval Buch released a joint statement countering the allegations.
Over the investment made in 2015, Buchs said, “The investment in the fund referred to in the Hindenburg report was made in 2015 when they were both private citizens living in Singapore and almost 2 years before Madhabi joined SEBI, even as a Whole Time Member. The decision to invest in this fund was because the Chief Investment Officer, Anil Ahuja, is Dhaval’s childhood friend from school and IIT Delhi and, being an ex-employee of Citibank, JP Morgan and 3i Group plc, had many decades of strong investing career.”
“As confirmed by Anil Ahuja, at no point in time did the fund invest in any bond, equity, or derivative of any Adani group company…” reads the statement.
Notably, in a report released late Saturday, Hindenburg alleged that Madhabi Buch and her husband Dhaval Buch first appear to have opened their account with IPE Plus Fund 1 on June 5th, 2015 in Singapore, per whistleblower documents.
A declaration of funds, signed by a principal at IIFL states that the source of the investment is “salary” and the couple´s net worth is estimated at $10 million, it added.
Buchs further in their statement said, “When in 2018 Mr. Ahuja left his position as CIO of the fund, we redeemed the investment in that fund,” the release stated. They also confirmed, with Ahuja’s affirmation, that at no point did the fund invest in any bonds, equities, or derivatives of any Adani group company.”
Also Read: What are the allegations levied by Hindenburg against SEBI chief?
Addressed Dhaval Buch’s appointment at Blackstone
The release also addressed Dhaval’s appointment as Senior Advisor to Blackstone Private Equity in 2019. The couple clarified that this role was due to Dhaval’s expertise in supply chain management and was publicly known long before Madhabi became Sebi Chairperson.
“On his appointment, the Blackstone Group was immediately added to Madhabi’s recusal list maintained with Sebi,” the statement said.
Two consulting companies of Madhabi Buch:
The release also touched on two consulting companies Madhabi had set up during her time in Singapore. “These companies became immediately dormant on her appointment with Sebi, and all relevant disclosures were made to Sebi,” the statement read.
The release further explained that from 2010 to 2019, Dhaval lived and worked in London and Singapore with Unilever. Madhabi also lived and worked in Singapore from 2011 to March 2017, first as an employee of a private equity firm and later as a consultant.
It is to be noted that, launching a scathing attack on the SEBI chief, HIndenburg said, “We had previously noted Adani’s total confidence in continuing to operate without the risk of serious regulatory intervention, suggesting that this may be explained through Adani’s relationship with SEBI Chairperson, Madhabi Buch.”
“What we hadn’t realized: the current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani,” it added.
Also Read: Hindenburg alleges SEBI chief’s stake in obscure offshore entities used in Adani scandal
Adani Group denounced the latest allegations:
Adani Group has also denounced the latest allegations from Hindenburg Research, terming them as “malicious”, “mischievous,” and “manipulative.
In a statement issued to stock exchanges, Adani group has rebuffed the latest claims made by the US-based short-seller saying that its overseas holding structure is fully transparent.
“We completely reject these allegations against the Adani Group which are a recycling of discredited claims that have been thoroughly investigated, proven to be baseless and already dismissed by the Hon’ble Supreme Court in January 2024,” it said.
