Mahindra Clarifies After Congress Alleges 'Payments To Sebi Chief's Husband'

The Mahindra Group has issued a clarification following allegations from Congress that Dhaval Buch, the husband of Sebi chairperson Madhabi Puri Buch, received payments from the company while his wife was serving as a full-time member of the markets regulator.

Congress accused Mahindra of paying Rs 4.78 crore to Dhaval Buch between 2019 and 2021, while Madhabi Buch was in office at Sebi. Mahindra has strongly denied the claims, labelling them as "false and misleading."

In a statement, Mahindra Group explained that Dhaval Buch was hired solely for his expertise in supply chain management after his retirement from Unilever in 2019. "Compensation has been specifically made and only for Mr. Buch’s supply chain expertise and management acumen, based on his global experience at Unilever," the company said. It added that Buch joined the company nearly three years before his wife was appointed as the Sebi chairperson.

Mahindra also rejected allegations suggesting that settlements involving the Mahindra Group with Sebi coincided with payments made to Dhaval Buch. The company clarified that five Sebi orders or approvals referenced in the allegations were not relevant to these claims. Of the five, three did not involve Mahindra or its subsidiaries, one was a fast-track rights issue that did not require Sebi approval, and another was an order from March 2018, prior to Dhaval Buch's employment with Mahindra.

Further distancing itself from the controversy, Dr. Reddy’s Laboratories, another company mentioned by Congress, also denied allegations. Dr. Reddy’s said it engaged Dhaval Buch for leadership coaching from October 2020 to April 2021, paying him Rs 6.58 lakh. The company noted that the assignment ended before Madhabi Buch became Sebi chairperson and rejected any suggestion that the company received favourable treatment from Sebi as "baseless and malafide."

The controversy erupted after Congress's Pawan Khera accused Madhabi Puri Buch of conflict of interest, citing her husband's consultancy income from Mahindra while she was adjudicating cases related to the group as a whole-time member of Sebi. Khera further listed companies like Mahindra, Dr. Reddy’s, Pidilite, ICICI, Sembcorp, and Visu Leasing and Finance as clients of Agora Advisory Pvt Ltd, where Dhaval Buch was also involved.

Madhabi Puri Buch served as a whole-time member of Sebi from April 2017 to October 2021 and was appointed as Sebi chairperson in March 2022.

The Mahindra Group, along with other companies named in the allegations, has refuted all claims, emphasising that they have adhered to all legal and regulatory standards.