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In a major relief to former SEBI chief Madhabi Puri Buch, the anti-corruption ombudsman Lokpal has cleared her of graft allegations linked to the Hindenburg report.
The Lokpal dismissed the allegations as "untenable, unsubstantiated, and frivolous", according to reports.
The ombudsman found no material evidence to support the claims, stating they were based on assumptions and did not meet the legal threshold for an investigation under the 1988 Act.
The Lokpal determined that complaints filed last year, including one by TMC MP Mahua Moitra, were primarily based on a report from "a recognised short seller whose objective was to target or pressure the Adani Group of Companies."
Hindenburg Research published a report on August 10, 2024, claiming that Buch and her spouse held interests in obscure overseas funds allegedly connected to a money-laundering scheme involving the Adani Group.
Both Buch and her husband rejected these accusations, stating that the short-seller was undermining the capital markets regulator's reputation and engaging in a smear campaign.
The Adani Group similarly dismissed the claims as spiteful and involving the manipulation of selective public data.
In its Wednesday ruling, the Lokpal "determined that the allegations in the complaint(s) are based more on speculation and conjecture rather than being supported by any verifiable evidence and do not constitute the elements of criminal offenses... warranting an investigation."
Consequently, these complaints have been dismissed, according to the order issued by a six-member panel led by Lokpal chairperson Justice A M Khanwilkar.
Buch, who assumed leadership of the Securities and Exchange Board of India (SEBI) on March 2, 2022, completed her term and stepped down on February 28 of this year.
