Congress Accuses PM Modi Of Compromising Sebi's Integrity To Protect ‘Crony Friends’

Congress President Mallikarjun Kharge on Tuesday accused Prime Minister Narendra Modi of undermining the institutional integrity of the Securities and Exchange Board of India (Sebi) in order to shield his "crony friends." Kharge alleged that Sebi’s credibility as a regulator has been damaged by its handling of the investigation into the Adani Group.

In a post on X, Kharge wrote, “The institutional integrity of Sebi as a robust market regulator has been tarnished by PM Narendra Modi to save his crony friends! The Mega Modi-Adani Scam is being investigated by Sebi. The Sebi Chairperson has multiple issues of conflict of interest. The Congress party has now revealed numerous such instances. The Modi-Shah-led committee appointed the Sebi Chairperson. Did they deliberately appoint her to benefit their crony friends? Or were they unaware of the shady financial dealings? Are Sebi orders on regulated companies now contingent on the consultancy fees its Chairperson receives through a shady company? Is this 'Na Khaunga, Na Khane Doonga'?”

Kharge also expressed concern that the "hard-earned money of 10 crore stock market investors" is at risk due to the scandal involving Sebi and the Adani Group.

At a press conference, Congress leader Pawan Khera reiterated these concerns, accusing the Sebi Chairperson, Madhabi Puri Buch, of maintaining financial relationships with various companies, which posed conflicts of interest. He further questioned why neither Sebi nor Prime Minister Modi had responded to the serious allegations that Congress had been raising over the past few days.

“We have been exposing the financial relationships of the Sebi Chairperson with various companies and highlighting the conflict of interest for the last 8 to 10 days. We have not received any response from Sebi or the Prime Minister... ICICI did respond to our charges, acknowledging that Sebi Chairperson Madhabi Puri Buch has been receiving money from ICICI in her account,” Khera said.

He also drew attention to inconsistencies in Buch’s previous statements, specifically regarding her involvement with Agora Advisory Private Limited, a company co-owned by her and her husband. “As of 31 March 2024, she still holds a 99 per cent stake in the company. She has been caught red-handed concealing information about her stake in the company. This is a clear case of willful concealment,” Khera added.

Earlier this month, Congress raised fresh allegations, accusing Buch of holding an office of profit during her tenure as Sebi Chairperson and receiving over Rs 16 crore from ICICI Bank between 2017 and 2024.