India’s anti-corruption ombudsman Lokpal on November 8 demanded an explanation from SEBI Chairman Madhabi Puri Buch in response to allegations of irregularities and conflict of interest. The complaints were filed by a Lok Sabha member and two others, based on a report by US short-selling firm Hindenburg Research, according to an official order.

The Lokpal clarified that its directive is purely procedural and does not constitute an expression of opinion on the merits of the allegations. The anti-corruption body gave Buch four weeks to submit his response.

Business today could not independently verify the report.

The order, signed by Lokpal Chairman Justice AM Khanwilkar and five other members, said: “We deem it appropriate to direct the named RPS (respondent official) to furnish an explanation regarding the allegations leveled against her in the complaints respective. »

The order further explains that this step is part of the procedure required under Section 20 of the Lokpal Act, which requires that Buch be given an opportunity to respond before the court decides whether there is a prima facie case for investigation.

Buch was asked to respond to the three complaints, and the Lokpal indicated that it may submit a consolidated explanation to avoid repetition. “This order in no way expresses our opinion on any issue in dispute. This is simply a procedural directive,” the order reiterates.

The Lokpal order was signed by Justices L Narayana Swamy, Sanjay Yadav and Ritu Raj Awasthi, along with members Sushil Chandra and Ajay Tirkey. It also states that Buch’s response must be filed within four weeks of receipt of the order. The case is expected to be examined in more detail on December 19.

Earlier, in an order dated September 20, the Lokpal had said that a complaint by the Lok Sabha member regarding Buch’s conflict of interest and alleged irregularities was not sufficient ground for a thorough investigation.

The complaint, along with two others, was based on a report by Hindenburg Research, which accused Buch and her husband of having stakes in offshore funds linked to the alleged money laundering scandal involving the Adani Group. Buch and her husband have denied the allegations, accusing Hindenburg Research of trying to discredit the financial markets regulator.

In her complaint, Trinamool Congress MP Mahua Moitra, who filed one of the complaints on September 13, urged the Lokpal to forward the case to the Enforcement Directorate (ED) or the Central Office of Inquiry (CBI) for preliminary investigation.

On September 20, the Lokpal had also sought details from the complainants regarding their efforts to verify the authenticity of the Hindenburg Research report dated August 10, 2024. The hearing was fixed for October 17 and later postponed to November 8.

On October 17, the Lokpal noted that the complainants had submitted affidavits in response to its earlier order. Separately, a third complaint was filed on October 14, reiterating similar allegations.

(With inputs from PTI)