The anti-corruption ombudsman has summoned the complainants, including SEBI chief Madhavi Puri Buch and TMC MP Mahua Moitra, for an “oral hearing” next month in relation to the corruption complaint, alleging impropriety and conflict of interest based on Hindenburg. According to the investigation report, an official order.
The Ombudsman had on November 8 sought Buch’s “clarification” on the complaints filed by Moitra, a Lok Sabha member, and two others.
Capital market regulatory body SEBI chairman Buch has been asked to submit a reply within four weeks.
Hearing the case, the Lokpal said that the designated RPS (Responsible Public Servant) “has timely filed his reply by way of affidavit on 07.12.2024, raising the preliminary issues as well as providing allegation-wise clarifications”.
Oral hearing to clarify position
“Further, we consider it appropriate that the RPS as well as the complainants be given an opportunity of oral hearing to explain their position in the complaint or affidavit, as the case may be,” according to the December 19 order signed by the Ombudsman. Presiding Justice AM Khanwilkar and five other members.
Accordingly, the Ombudsman has asked the Registry to issue a notice to the RPS and the complainant(s) to avail the opportunity of oral hearing on January 28.
“It shall be open to the RPS and the complainant to authorize counsel to support their cause, if they so desire during the oral hearing,” the order said.
The Ombudsman said “it is proper and in the interest of justice that copies of the affidavits and documents filed by the RPS are provided to the complainants in reply to the respective complainants and supplementary affidavits”.
‘Complainant asked to ensure confidentiality’
The anti-corruption ombudsman asked his registry to send a copy of Butch’s affidavit along with it to complainants in related complaints.
“The complainants, however, must ensure that the confidentiality of the proceedings and the contents of the affidavit is maintained…,” the order said.
SEBI chief Buch and the complainants, “if (they) wish to rely on any reported decisions, should file the compilation(s) of such decisions duly paginated, before and not later than 18.01.2025”, it said and listed for issue. 28 January at 11:30 am.
In a September 20 order, the Ombudsman said the complaint filed by the MP alleging impropriety and conflict of interest by the SEBI chief was “little” to persuade it to order any probe.
The anti-corruption ombudsman’s observations came while hearing two complaints, one filed by a TMC MP based on reports of a US-based “activist short-seller”.
In its report, US-based short-seller Hindenburg Research alleged that Buch and her husband held stakes in an obscure offshore fund used in the Adani Group’s alleged money-siphoning scandal.
They denied the allegations, saying the short sellers had attacked the credibility of the capital market regulator and attempted character assassination.
The Adani Group termed Hindenburg Research’s allegations as malicious and selective manipulation of public information.
In a post on X, TMC MP Moitra said on September 13 that she had filed a complaint against the Sebi chief with the Ombudsman and insisted that the anti-corruption Ombudsman should refer it to the Enforcement Directorate (ED) or the Central Bureau of Investigation. CBI) after “thorough FIR investigation” for preliminary investigation.
Without naming the complainant, the ombudsman in his September 20 order “also sought details about the efforts made by the concerned complainant to verify the authenticity and credibility of the claims in the recent report of Hindenburg Research published on August 10, 2024”.
The case was then posted for hearing on October 17 and later on November 8. A third complaint was also filed on October 14 after “another complainant again raised the same issues,” according to the November 8 Ombudsman’s order.
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