The court's decision follows a petition filed by journalist Sapan Shrivastava, who accused Buch and senior SEBI officials of facilitating the fraudulent listing of a company on the stock exchange. The complaint suggests that SEBI officials permitted the listing of a company that failed to meet regulatory norms, leading to market manipulation and investor losses.
Special Judge Shashikant Eknathrao Bangar, presiding over the case, stated, "There is prima facie evidence of regulatory lapses and collusion, requiring a fair and impartial probe." He emphasized that the inaction by law enforcement agencies and SEBI necessitated judicial intervention under the provisions of the Criminal Procedure Code.
The court has directed the ACB, Worli, Mumbai Region, to register an FIR under relevant sections of the Indian Penal Code, the Prevention of Corruption Act, the SEBI Act, and other applicable laws. This move underscores the judiciary's commitment to ensuring accountability within regulatory bodies.
Madhabi Puri Buch concluded her three-year tenure as SEBI chief on February 28, 2025, and was succeeded by Tuhin Kanta Pandey. During her leadership, SEBI undertook several initiatives aimed at enhancing transparency and investor protection in the Indian capital markets.
The allegations against Buch are not isolated. In August 2024, Hindenburg Research accused her and her husband of having undisclosed investments in offshore entities linked to Vinod Adani, a key figure in the Adani Group. These connections allegedly hindered SEBI's thorough investigation into fraud charges against the conglomerate. Both Buch and her husband refuted these claims, emphasizing their financial transparency and compliance with disclosure requirements.
In September 2024, Indian corporations Mahindra & Mahindra and Dr. Reddy's Laboratories admitted to paying Dhaval Buch, Madhabi Puri Buch's husband, for his professional services. Both companies denied any conflict of interest, countering accusations made by the Congress party. The opposition alleged that Dhaval Buch received payments during his wife's tenure as a senior regulatory official involved in market investigations. No concrete evidence was provided to support these accusations.
In response to these allegations, Buch maintained that she had complied with all regulatory disclosure guidelines. She refuted accusations of any regulatory mismanagement involving her former employer, ICICI Bank, and dismissed claims of conflicts involving consulting fees from other firms tied to her husband. Buch asserted that these allegations were based on illegally obtained tax returns.