The Supreme Court directed the complainant to keep the matter confidential

SEBI chairperson Madhabi Puri Buch speaks during the Global Fintech Fest in Mumbai on August 29, 2024.
| Photo Credit: PTI

Anti-corruption ombudsman Lokpal has called SEBI chief Madhabi Puri Buch and also complainants, including Trinamool Congress MP Mahua Moitra, for an “oral hearing” next month in connection with corruption complaints being heard by it, alleging impropriety and conflict of interest on the basis of a Hindenburg Research report, according to an official order.

The Lokpal on November 8 sought Ms. Buch’s “explanation” on the complaints filed by Ms. Moitra, a Lok Sabha member, and two others.

Ms. Buch, the chairperson of capital markets regulator Securities and Exchange Board of India (SEBI), was asked to submit her response within four weeks.

Hearing the case, the Lokpal said the named RPS (respondent public servant) “has filed her response by way of affidavit sworn on 07.12.2024 in time, raising preliminary issues as well as giving explanation allegation-wise”.

“Further, we deem it appropriate that the RPS as well as the complainants can be given opportunity of oral hearing to clarify their positions taken in the complaints or the affidavit, as the case may be,” says the December 19 order signed by Lokpal chairperson Justice A.M. Khanwilkar and five other members.

Accordingly, the Lokpal has asked the registry to issue notices to the RPS as well as the complainant(s) to avail of the opportunity of oral hearing on January 28.

“It will be open to the RPS as well as the complainant to authorise an advocate to espouse their cause, if they so desire at the time of oral hearing,” the order said.

The Lokpal said “it is appropriate and in the interest of justice that the complainants are provided a copy of the affidavit and documents filed by the RPS by way of response to the respective complainants and the supplementary affidavits”.

The anti-graft ombudsman asked its registry to forward a copy of Ms. Buch’s affidavit and its accompaniments to the complainants in respective complaints.

“The complainants, however, shall ensure that confidentiality of the process and the contents of the affidavit is maintained…,” the order said.

SEBI chief Buch and the complainants, “if (they) wish to rely on any reported decisions must file compilation(s) of such decisions duly paginated, well in advance and not later than 18.01.2025”, it said and listed the matter for 11:30 am on January 28.

In an order dated September 20, the Lokpal had said the complaint by the parliamentarian, alleging impropriety and conflict of interest by the SEBI chief, “falls short” of persuading it to order any probe.

The anti-corruption ombudsman’s observation came while hearing two complaints, including one by the Trinamool MP, filed on the basis of a report by the U.S.-based “activist short-seller”.

In its report, U.S.-based Hindenburg Research alleged that Ms. Buch and her husband had stakes in obscure offshore funds used in the alleged money siphoning scandal involving the Adani Group.

They denied the allegations, 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.

In a post on social media platform X, Trinamool MP Moitra on September 13 said she had filed a complaint against the SEBI chief with the Lokpal and asserted that the anti-graft ombudsman should forward it to the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI) for preliminary probe followed by a “full FIR enquiry”.

Without mentioning the name of the complainant, the Lokpal in its September 20 order had also sought details “regarding the efforts made by the respective complainant to verify the authenticity and credibility of the claims in the recent report of Hindenburg Research published on August 10, 2024”.

The matter was then posted for hearing on October 17 and later on November 8. A third complaint was also filed on October 14 by “yet another complainant, once again raising the same issues”, according to the Lokpal’s order of November 8.

Anti-corruption ombudsman Lokpal on Tuesday directed the CBI to investigate the cash-for-query allegations against Trinamool Congress (TMC) leader Mahua Moitra and submit findings before it within six months, according to an order.

Ms Moitra was expelled from the Lok Sabha in December last year for “unethical conduct” and has moved the Supreme Court challenging her expulsion. She has been renominated by the party as its candidate from the Krishnanagar Lok Sabha seat in West Bengal.

The Lokpal directive came while deciding a complaint by BJP Lok Sabha member Nishikant Dubey alleging that Moitra had asked questions in the Lower House of Parliament in exchange for cash and gifts from Dubai-based businessman Darshan Hiranandani.

“After careful evaluation and consideration of the entire material on record, there remains no doubt regarding the fact that the allegations levelled against the RPS (Respondent Public Servant), most of which are supported by cogent evidence, are extremely serious in nature, especially in view of the position held by her,” reads the Lokpal order.

It has referred to Ms Moitra as the RPS in the order.

“Therefore, in our considered opinion, a deeper probe is required to establish the truth. This is vital in view of the position and status held by the RPS at the relevant point of time,” said the order of the Lokpal bench comprising Justice Abhilasha Kumari (judicial member) and Members Archana Ramasundaram and Mahender Singh.

It said whatever be the position held, a public servant is bound to exercise probity in the discharge of his or her duties.

“The responsibility and burden are heavier on the shoulders of a public representative. Corruption is a malaise that is adversely affecting the legislative, administrative, social and economic functioning of this democratic country,” the order said.

“It is a duty cast upon us and, indeed, the mandate of the (Lokpal) Act, that all attempts be made to root out corruption and corrupt practises that bring under their fold aspects such as undue advantage, illegal gain or benefit and quid pro quo in the discharge of public duties,” it said.

Accordingly, “we direct the CBI…to investigate all aspects of the allegations made in the complaint, and submit a copy of the investigation report within a period of six months from the date of receipt of this order”, the order said.

The CBI shall also file periodical reports regarding the status of the investigation, every month, it added.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)