The Congress on Tuesday alleged that SEBI Chairman Madhabi Buch held a 99% stake in a company that provided consultancy services to the government. Mahindra and Mahindra The group and her husband received Rs 4.78 crore of income from the conglomerate while she was trying the cases of the same group.
Congress Chief Secretary for Communications Jairam Ramesh asked whether Prime Minister Narendra Modi knew that Buch owns 99% of Agora Advisory Private Limited and receives substantial fees from listed entities including Mahindra and Mahindra.
The Mahindra and Mahindra Group has rejected the allegations, calling them « false and misleading ». The group has categorically stated that it has never sought preferential treatment from SEBI. « We maintain the highest standards of corporate governance, » a Mahindra and Mahindra Group spokesperson said.
New revelations
Issuing a fresh set of “revelations” on the issue of conflict of interest involving the SEBI chairperson, Ramesh said on X: “Our questions are specifically for the non-biological Prime Minister who appointed her in the first place – Is the Prime Minister aware that Madhabi Buch owns 99% of Agora Advisory Private Limited and receives substantial fees from listed entities including Mahindra & Mahindra?” What kind of advisory services does Agora Advisory Private Limited provide and are they financial? Is the Prime Minister aware of Buch’s links with any conflicted entity? he asked.
« Is the Prime Minister aware that Mrs. Madhabi Puri Buch’s husband is getting substantial income from M&M Limited after his retirement? » Ramesh asked.
Agora Council
Earlier, addressing a press conference at AICC headquarters, Congress media and publicity department chief Pawan Khera said that recent Hindenburg report had alleged that SEBI Chairman Buch held 99% stake in a company called ‘Agora Advisory Private Limited’.
Agora Advisory is a private entity incorporated on May 7, 2013 and claims to provide various types of advisory or consultancy services, Khera said.
« Although, in her response, Madhabi Buch claimed that the two advisory firms set up by her in Singapore and India – including Agora Advisory Private Limited in India – became ‘immediately inactive upon her appointment to SEBI’, the reality is that as on March 31, 2024, she still holds 99% stake in the Indian entity which has been actively providing advisory/consultancy services till date, » Khera said.
« This is not just a case of willful concealment, but a case of willful lying. In my last press conference, I mentioned that this is not just a conflict of interest, but a case of corruption. Today’s revelations prove that this is not just corruption, but a criminal conspiracy, absolutely shameless and brazen in its execution, » he said.
Khera said Buch’s « 99% stake » in Agora Advisory Private Limited raises questions as to whether all the companies were using advisory or consulting services from Agora Advisory Private Limited and why.
« Have any of them been examined by SEBI? Today we have found the missing pieces of this puzzle, » Khera said.
The Congress leader said Buch had received a total of ₹2.95 crore through Agora Advisory Private Limited from 2016-17, 2019-20, till 2023-24, as a full member of SEBI and then as its chairman, with 2017-18 and 2018-19 being the exception years.
The list of companies that have benefited from the advisory services of Agora Advisory Private Limited – Mahindra and Mahindra Limited, Dr. Reddy’s, Pidilite, ICICI, Sembcorp and Visu Leasing and Finance, he said.
« All the companies mentioned above are listed companies and regulated by SEBI. Any income received by Buch’s ‘Agora Advisory Private Limited’ from them constitutes a conflict of interest and is in violation of Section 5 of the SEBI Code on Conflict of Interest for Board Members, » it said.
« Strangely, out of the total Rs 2.95 crore received by Agora Advisory Private Limited, Rs 2.59 crore came from a single entity – Mahindra & Mahindra Group… As if that was not shocking enough, the husband of SEBI Chairperson – Mr. Dhaval Buch received Rs 4.78 crore as personal income from Mahindra & Mahindra Group, » he alleged.
Khera claimed that this happened at a time when his wife, a long-serving SEBI member, was trying cases of the same group.
« The year of settlement and the year of receipt of income by Dhaval Buch coincide by chance, » Khera added.
Mahindra Group Statement
In its statement, Mahindra and Mahindra Group said it hired Dhaval Buch in 2019 specifically for his supply chain and procurement expertise, shortly after he retired as Unilever’s global procurement director.
« He spent most of his time with Bristlecone, a subsidiary which is a supply chain consulting firm. Mr. Buch is currently a member of the board of directors of Bristlecone. He joined the Mahindra Group almost three years before Ms. Madhabi Puri Buch was appointed as the Chairperson of SEBI, » the group said.
She said the compensation was specifically and solely for Buch’s supply chain expertise and management acumen, based on his global experience at Unilever.
Mahindra and Mahindra Group also said that none of the five SEBI orders or approvals mentioned in the allegations were relevant and that three of the five did not relate to the company or any of its subsidiaries.
« One of them was an accelerated rights issue, which did not require any approval from SEBI. The other was an order issued in March 2018, much before Mr Dhaval started working with the Mahindra Group, » the company said.