Impropriety, conflict of interest: Lokpal seeks Madhabi's explanation
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New Delhi: An official order by the anti-corruption ombudsman Lokpal sought SEBI chief Madhabi Puri Buch's explanation on complaints of impropriety and conflict of interest on Friday. The complaints were filed by a Lok Sabha member and two others on the basis of a report by US-based short-seller Hindenburg Research, PTI reported.
However, Lokpal also said that the move is only a procedural directive and not an expression of their opinion on any matter in the issue.
The Lokpal order asked Buch, the chairperson of capital markets regulator Securities and Exchange Board of India (SEBI), to submit her response within four weeks.
"...We deem it appropriate to call upon the named RPS (respondent public servant) to offer explanation qua the allegations made against her in the respective complainant and elaborated in the concerned explanatory affidavit," reads the order signed by Lokpal chairperson Justice A M Khanwilkar and five other members.
"This opportunity is being afforded to the named RPS as per the mandate in the third proviso of sub-section (1) of section 20 of the Lokpal Act before the bench would proceed to determine whether there exists a prima facie case for an investigation into the allegations," it said.
It said she could submit her response or explanation complaint-wise in all three complaints to avoid repetition, the order said.
"We reiterated that this order is not an expression of our opinion on 'any matter in issue', either way. This is only a procedural direction...," it added.
The order, signed by judicial members Justices L Narayana Swamy, Sanjay Yadav and Ritu Raj Awasthi, and members Sushil Chandra and Ajay Tirkey, said Buch could file an affidavit to offer an explanation within four weeks from the receipt of the order. However, Lokpal did name the complainants in the matter.
Lokpal listed the matter on December 19 for further consideration.
In its report, Hindenburg Research alleged that Buch and her husband had stakes in obscure offshore funds used in the alleged money-siphoning scandal involving the Adani Group.
The allegations were denied by them, saying the short-seller was attacking the capital markets regulator's credibility and attempting a character assassination. The Adani Group had also termed Hindenburg Research's allegations malicious and manipulation of selective public information.
