Lokpal Dismisses All Complaints Against Ex-SEBI Chief Madhabi Puri Buch, Calls Allegations Politically Motivated
New Delhi | May 28, 2025 — In a significant development that reaffirms institutional due process, the Lokpal of India has dismissed all complaints against former SEBI Chairperson Madhabi Puri Buch, terming them vexatious, frivolous, and politically motivated.
The complaints, three in total, were based on claims stemming from a second Hindenburg Report. These allegations accused Buch of corruption, conflict of interest, and regulatory bias during her tenure, especially in relation to the Adani Group and other SEBI-regulated entities.
However, the Lokpal’s final order has completely exonerated Buch and underlined the lack of credible evidence in the complaints.
“The allegations are based more on assumptions and presumptions... not supported by any verifiable material,” the Lokpal noted. “Accordingly, these complaints are disposed of.”
Hindenburg Report Dismissed as Unreliable
The Hindenburg Report, cited as the core source in the complaints, was dismissed by the Lokpal as “unreliable and partisan”, pointing out that it originated from a known short-seller and could not be used as the basis for official action.
“The report by itself cannot be made the sole basis to escalate action... the allegations are untenable, unsubstantiated, and bordering on frivolity,” the order said.
The Lokpal also emphasized that SEBI’s previous regulatory actions, including its probes into the Adani Group, had already been commended by the Supreme Court, and that no new grounds had emerged to warrant further investigation.
Adani Group Responds: 'Total Exoneration'
Responding to the development, an Adani Group spokesperson welcomed the decision, stating that the Lokpal’s ruling confirms the complete baselessness of allegations of regulatory favoritism.
“The company has been totally exonerated by a Constitutional Authority,” the spokesperson said, adding that the Supreme Court, SEBI, and now Lokpal have all found no wrongdoing or manipulation by the Adani Group.
The order also clarified that neither Buch nor her husband had any active or controlling interests in Adani Group shares and were merely passive investors.
Strong Endorsement of SEBI’s Integrity
This ruling is being seen as a strong endorsement of SEBI’s institutional independence, particularly in light of sustained external criticism and media narratives following the Hindenburg report.
“The Complainant(s)... by making such unverified and fragile allegations... has inevitably trivialised the process before the Lokpal. It is nothing short of vexatious proceedings,” the Lokpal stated bluntly.
The order referenced the Lalita Kumari judgment by the Constitution Bench to reiterate the importance of verifiable material evidence before launching formal investigations.
Implications: Media Trials and Foreign Reports Under Scanner
Legal experts say this order sets a critical precedent against the growing trend of media-led trials and foreign speculative attacks on Indian markets and institutions.
By clearly rejecting the conflict of interest allegations and supporting SEBI’s actions, the Lokpal’s ruling reassures investors that India’s capital markets remain robustly governed and are not swayed by unverified external claims.
With the Supreme Court, SEBI, and now the Lokpal all giving a clean chit, the episode appears to be a complete institutional vindication of both the Adani Group and former SEBI chief Madhabi Puri Buch. The order also serves as a caution against politicising regulatory processes and reinforces confidence in India’s financial governance framework.