New Delhi: The Congress has intensified its demands for an in-depth investigation following allegations against Madhabi Buch, the Chairperson of the Securities and Exchange Board of India (SEBI), by American short-seller Hindenburg Research. The allegations have sparked significant controversy, with Congress President Mallikarjun Kharge urging the formation of a Joint Parliamentary Committee (JPC) to probe what he has described as a “mega scam.”
Kharge expressed concerns that without a JPC inquiry, there would be a persistent fear that Prime Minister Narendra Modi might intervene to protect his allies, potentially compromising the integrity of India’s constitutional institutions. The Congress leader emphasized the need for immediate action, reiterating the party’s longstanding demand for a JPC investigation into the matter.
In a series of posts on social media platform X, Kharge criticized the central government, pointing to the SEBI’s earlier clean chit to industrialist Gautam Adani in January 2023, following the initial Hindenburg report. The fresh allegations, which involve purported financial dealings by SEBI Chief Buch, have only heightened the need for a thorough investigation, according to Kharge.
“The small and medium middle-class investors, who place their hard-earned money in the stock market and trust SEBI, need to be protected,” Kharge stated. “Until there is a JPC inquiry into this mega-scam, Prime Minister Modi will continue to help his ‘A1 friend,’ tearing apart the country’s constitutional institutions.”
Congress spokesperson Supriya Shrinate also condemned the government’s response to the allegations. Drawing an analogy, Shrinate said, “There was a robbery in the village, bandits looted indiscriminately. People went to the Kotwal for investigation, but he was reluctant. Later, it was found that Kotwal also got some goods from the loot. The same story applies to the Adani scam and SEBI.”
Shrinate further criticized the central government, questioning the credibility of SEBI’s leadership and accusing the government of being involved in a conspiracy to protect key allies. “This entire disclosure has raised serious questions about the credibility of SEBI’s chief, the government, and Prime Minister Modi. It’s not just that something is wrong here; the entire system appears to be compromised,” he asserted.
Hindenburg Research’s report alleged that SEBI Chairperson Madhabi Buch and her husband were involved in unexplained foreign funds linked to the Adani money laundering scandal. The report further claimed that SEBI had shown an unusual interest in Adani’s undisclosed network of shell companies based in Mauritius and other foreign locations. The latest allegations come after an 18-month investigation by Hindenburg, which had previously reported on alleged financial irregularities within the Adani Group.
In response, the Adani Group on Sunday refuted the allegations made by Hindenburg, describing them as “malicious and selective” distortions of public information. The group asserted that it has no commercial links with SEBI Chairperson Buch or her husband.
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