New Delhi: Whistleblower documents have exposed a startling revelation: Madhabi Puri Buch, the current Chairperson of the Securities and Exchange Board of India (SEBI), had a stake in obscure offshore entities implicated in the Adani money siphoning scandal. These entities were allegedly used for billions of dollars in undisclosed related party transactions, stock manipulation, and secret investments.
Background: The Adani Conundrum
Nearly 18 months ago, Hindenburg Research published a comprehensive report on the Adani Group, unearthing evidence that this Indian conglomerate was orchestrating “the largest con in corporate history.” The report highlighted a complex web of offshore shell entities, primarily based in Mauritius, which Adani allegedly used to conceal financial activities. Despite this damning evidence and numerous independent media investigations, SEBI remained surprisingly inactive, failing to take public action against the Adani Group.
SEBI’s Curious Silence
Instead of addressing the core issues, SEBI recently sent Hindenburg Research a ‘show cause’ notice, focusing on technicalities rather than the substance of their 106-page analysis. The regulator questioned the disclosure of Hindenburg’s short position, ignoring the broader concerns about Adani’s offshore empire¹. The Indian Supreme Court also criticized SEBI’s investigation, revealing that the regulator had drawn a blank in probing these secret shareholders.
The Buch Connection
Now, the bombshell: Madhabi Buch, SEBI’s Chairperson, and her husband were stakeholders in these mysterious offshore funds linked to the Adani scandal. These funds operated under the guise of the “IPE Plus Fund,” a small Mauritius-based structure set up by an Adani director through India Infoline (IIFL), a wealth management firm with ties to the infamous Wirecard scandal¹. The revelation raises serious questions about regulatory oversight and accountability.
Adani’s Confidence and SEBI’s Challenge
Adani’s unwavering confidence in evading regulatory scrutiny seems justified, given SEBI’s lackluster response. The scandal involves billions of dollars, yet the regulator’s actions have been trivial at best. Adani’s CFO dismissed the notices as insignificant even before due process concluded.
As the scandal unfolds, SEBI faces mounting pressure to address the Adani Group’s alleged financial misconduct. The involvement of its own Chairperson adds a layer of complexity to an already convoluted saga. The question remains: Will SEBI rise to the occasion and hold the Adani empire accountable? Only time will tell.
Link to Hindenburg Research’s new report
