NEW DELHI: Under sustained criticism from the Congress for over a fortnight, Sebi Chairperson Madhabi Puri Buch and her husband Dhaval have responded to the allegations, issuing a personal statement clarifying the situation.
They stated that Madhabi has never handled any files involving Agora Advisory—the consultancy firm she founded before joining Sebi—or any of the business groups mentioned in the Congress's allegations.
They also accused Congress of obtaining their income tax returns through “fraudulent means,” which they claimed was a violation of the Income Tax Act, and warned that they may seek legal remedies.
The Buchs referenced communications from companies named by the Congress, which rejected the allegations. In their statement issued on Friday, they reiterated that Congress had accessed their income tax filings “fraudulently,” in violation of the Income Tax Act.
The statement was released on the same day that another opposition Member of Parliament, Mahua Moitra of the TMC, filed a complaint with the Lokpal against the Sebi chief.
In relation to Madhabi’s role at Agora, the statement highlighted, “In keeping with the highest standards of governance, Madhabi has never dealt with any file involving Agora Advisory, Agora Partners, Mahindra Group, Pidilite, Dr Reddy’s, Alvarez & Marsal, Sembcorp, Visu Leasing, or ICICI Bank at any stage after joining Sebi.”
The Buchs added: “As is evident from these facts and the communications from the companies involved, the allegations are completely false, malicious, and defamatory.”
The statement also addressed allegations regarding ICICI Bank's payments to Agora. It clarified that these were interest payments on deposits and said, “Ascribing motive to it is unfortunate and defamatory.”
Responding to claims that Dhaval benefited from Madhabi’s appointment as Sebi chairperson, the Buchs noted, “Dhaval has his own strong reputation as a leading professional in his field.” They further clarified that Dhaval had joined Mahindra & Mahindra in 2019, well before Madhabi’s appointment as Sebi chairperson, and his selection was based on merit and experience.
Regarding accusations that companies which had engaged with Agora received favourable orders from Sebi, the Buchs said any suggestion of improper motivation behind those business decisions was “unfortunate and defamatory” to Dhaval and the companies named.
The statement explained that Dhaval’s consulting assignments were structured to “transparently isolate” the income generated from those assignments, ensuring that accruals and expenses were kept separate from his personal income and expenses. “It is unfortunate that a process aimed at facilitating greater transparency is being portrayed as suspicious,” they added.
Addressing the payments from ICICI Bank, they clarified that Madhabi had exercised her employee stock options (ESOPs) in accordance with company rules, which allow the exercise of vested options for up to ten years.
In response to questions about uneven pension payments, Madhabi said these were part of a contributory annuity scheme with ICICI Prudential, and the uneven amounts were related to the exercise of ESOPs at various stages over the past decade.
On the issue of tax deducted at source (TDS) payments by ICICI Bank, Madhabi clarified that, as per rules, the company collects the required perquisite tax (TDS) from individuals exercising their options and pays it to the tax authorities. She stated that she had paid her perquisite tax upfront as required.
Madhabi also denied allegations that she had engaged in unauthorised employment while working at ICICI Bank. She explained that in 2011, she had taken unpaid leave to join her husband in Singapore, with the bank’s prior approval. While in Singapore, she took a position with a private equity firm, and when it became clear in 2013 that she would remain there, she officially retired from ICICI Bank in accordance with the company’s policies.
The Buchs dismissed the claims that Madhabi had manipulated her tax returns as “completely false, malicious, and defamatory,” adding that her returns had been “twisted deliberately” to create a false narrative. They reiterated that the Congress had obtained their tax returns “fraudulently” in violation of the Income Tax Act.
“Our income tax returns have clearly been obtained through fraudulent means and illegally. This constitutes a clear breach of our right to privacy, which is a fundamental right, and a violation of the Income Tax Act,” the statement said. The Buchs labelled the allegations as “malicious and motivated” and stressed that all the relevant matters had been fully disclosed in their tax returns, with all taxes duly paid.
They concluded by noting that the allegations were being made in parts to “malign reputations and distort facts.” The Buchs said they do not rule out the possibility of further allegations being levelled in the future, and they “reserve the right to take appropriate legal remedies.”
