Anti-corruption ombudsman Lokpal has said the complaint of the Trinamool Congress MP Mahua Moitra alleging impropriety and conflict of interest by the SEBI chief Madhabi Puri Buch falls short of persuading it to order any probe, asking the complainant to verify the authenticity of the claims in the recent report of Hindenburg Research.
The anti-corruption body, headed by former Supreme Court judge Justice AM Khanwilkar, stated that the Lokpal cannot solely act based on the Hindenburg Research report. The report raised allegations of quid pro quo against SEBI Chief Buch, citing her investments in offshore funds linked to the Adani group of companies.
While deciding on two complaints filed by different individuals based on a report by US-based short-seller Hindenburg Research, it asked both the complainants to file affidavits mentioning details of the efforts made by them to verify the authenticity and credibility of the claims in the recent report of Hindenburg Research published on 10.08.2024.
The Lokpal requested the details of the allegations against the individual that could constitute corruption within the Prevention of Corruption Act, 1988, according to its public order dated September 20, to prevent misinterpretation and politicization of the issue.
Hindenburg Research’s report claimed that Buch and her husband were involved in offshore funds related to an alleged Adani scandal, which both parties refuted, considering it an attack on the regulator’s credibility.
In response to a complaint lodged by a Lok Sabha MP, the Lokpal found insufficient grounds to initiate a preliminary inquiry under Section 20 of the Lokpal Act of 2013.
“This direction is only a procedural order, issued for testing the question of tenability of the concerned complaint and to record a prima facie view as required under Section 20 of the Act of 2013, in the peculiar fact situation,” reads the order issued by Lokpal chairperson Justice A M Khanwilkar and three other members — Justices L Narayana Swamy, Ritu Raj Awasthi, and Sushil Chandra.
Trinamool Congress MP Mahua Moitra filed a complaint on September 13 and proposed that the matter be referred to the Enforcement Directorate or the Central Bureau of Investigation for a full inquiry.
Concerning the complaint and its subsequent investigation, the Lokpal highlighted the importance of protecting the identities involved and ensuring a fair inquiry process.
The Lokpal in its order, without mentioning the name of the complainant, said the communication filed in its office is dated September 11, 2024, whose entire copy “was contemporaneously placed in public domain (in media) despite the mandate of Rule 4 of the Lokpal (Complaint) Rules, 2020-guaranteeing protection of identity not only to the complainant but also to the public servant complained against till the conclusion of the inquiry or investigation.”
The complainant hastily submitted the complaint on the same day they came across the Hindenburg Research report without adequate verification, prompting the Lokpal to stress the need for credible evidence before lodging complaints.
The Lokpal emphasised the requirement for a thorough articulation of corruption allegations, following a strict procedural approach to assess the validity of the complaint.
The cases were scheduled for further review by the Lokpal on October 17, 2024, to delve deeper into the allegations and the necessity for a detailed investigation, PTI reported.