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In a press conference on Monday, Subhash Chandra, the prominent media tycoon and founder of Zee Entertainment, made serious allegations against Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (Sebi). Chandra accused Buch of engaging in corrupt practices, asserting that she and her associates have manipulated regulatory processes for personal gain.
Chandra recalled the events of 25 January 2019, when Zee shares plunged by 33 per cent following a margin call that the company could not meet. He stated that despite the strong performance of the group’s companies, external forces were working against them. In a letter to the public, he said the reasons behind the group’s increased debt exposure and urged lenders to be patient as he worked towards selling a stake in Zee.
During the press conference, Chandra revealed that one of these “negative forces” was none other than Sebi Chairperson Madhabi Puri Buch. He alleged that on 17 February 2024, he was approached by a person named Manjit Singh, who claimed to have connections with Buch and her husband. Singh allegedly offered to resolve Sebi-related issues for a substantial payment. Although Chandra was initially sceptical, he cited recent revelations involving Buch and her associates that led him to believe Singh’s claims.
Chandra further accused Buch of dramatically increasing her and her husband's income, from around Rs 1 crore per annum before she took over Sebi, to Rs 40-50 crore per annum. He called for a thorough investigation into the fees paid by corporations in settled or compounded cases, suggesting these payments could be linked to Buch’s alleged corrupt activities.
He also mentioned that access to communications between Buch, former ICICI Bank CEO Chanda Kochhar and their respective spouses could expose a larger conspiracy. Chandra claimed that Buch’s involvement with ICICI Bank during her tenure as a Whole-time Member of Sebi was financially motivated and part of a broader pattern of corruption.
Chandra expressed his frustration with Sebi's conduct in various investigations, particularly those involving Zee Entertainment. He pointed to an email from a SEBI investigating officer that suggested a concerted effort to target him and his family. He also criticised Sebi’s role in the failed merger between Zee and Sony, which he claimed was sabotaged under Buch’s direction, resulting in significant losses for minority shareholders.
Chandra also said that he would not cooperate with Sebi, describing their investigation as biased and prejudiced, and condemned Sebi’s actions as being driven by a pre-conceived agenda orchestrated by its Chairperson.
These explosive allegations have sent shockwaves through the corporate and regulatory communities, raising serious questions about the integrity of Sebi under Madhabi Puri Buch's leadership.
In a report released on 10 August, US-based Hindenburg Research claimed that Sebi Chairperson Madhabi Puri Buch and her husband previously invested in offshore funds that were also utilised by the Adani Group. The report mentions the Bermuda-based Global Opportunities Fund, which the Financial Times reported was used by entities linked to the Adani Group for trading in their own shares, and noted that this fund had various sub-funds.
According to whistleblower documents cited by Hindenburg, Buch and her husband, Dhaval Buch, invested in one of these sub-funds, IPE Plus Fund 1, from 2015 until they exited in 2018. Hindenburg suggests that this investment might be connected to what it describes as SEBI's slow response in addressing concerns about the Adani Group and its use of offshore funds.
Hindenburg further accused Madhabi Puri Buch of having conflicts of interest that, according to the firm, hindered a thorough investigation into allegations of manipulation and fraud involving the Adani Group. The report stated, "We find it unsurprising that SEBI was reluctant to follow a trail that may have led to its own chairperson."
