Lokpal Questions Credibility Of Hindenburg Report On Pleas Seeking Investigation Against SEBI Chairperson Madhabi Puri Buch; Asks Complainants To Back Up Corruption Claims

A week after TMC Lok Sabha MP Mahua Moitra filed a complaint with the Lokpal against SEBI Chairperson Madhabi Puri Buch, alleging “quid pro quo arrangements which potentially threaten national interests,” the anti-corruption body, led by former Supreme Court judge A.M. Khanwilkar, on Friday said that the complaint against the SEBI chief is solely based on the Hindenburg report and does not persuade them to take a prima facie view that a preliminary inquiry is warranted.

However, the Lokpal has directed the complainants to "articulate the allegations against the concerned person which may constitute an ‘offence of corruption’ within the meaning of the Prevention of Corruption Act, 1988, ‘provision wise.’”

The anti-corruption body observed that "certain acts of commission or omission may, at best, amount to impropriety but need not necessarily be regarded as illegality or, for that matter, an offence of corruption as defined by the Prevention of Corruption Act, 1988."

Expressing disappointment over the information about complaint being shared on social media platforms, the Lokpal said, "Placing the order of Lokpal at this stage is not permissible in terms of Section 20 (9) of the Lokpal Act, 2013, read with Rule 4 of the Lokpal Complaint Rules, 2020. However, as the complete copy of the letter addressed to the Lokpal in the second complaint has already been placed in the public domain through print and digital media, the underlying reason for not publishing such an order of the Lokpal has dissipated."

The Lokpal has given the complainants three weeks to file an affidavit on “details regarding the efforts made by the respective complainant to verify the authenticity and credibility of the claims in the recent Hindenburg Research report published on 10.08.2023.”

The 11-page order has not revealed the names of the complainants.

Notably, on September 13, in a social media post, TMC MP Mahua Moitra stated that she had filed a Lokpal complaint against Madhabi Puri Buch.

The Lokpal bench also comprises former Law Commission Chairperson Ritu Raj Awasthi, Justice L. Narayana Swamy, and Sushil Chandra.

The next hearing into the matter is expected on October 17.