Congress's fresh charge on Sebi chief: Got rent income from company under probe

Intensifying its attack on Sebi chairperson Madhabi Puri Buch, the Congress on Friday alleged she received rental income from an entity affiliated with a Mumbai company that the markets' regulator was investigating for various cases, including that of insider trading.

Sebi chief Madhabi Puri Buch

Addressing a press conference, Congress leader Pawan Khera said, "This is not just conflict of interest, but a case of out-and-out corruption. Is it ethical, is it legal?

Khera alleged that Madhabi Buch gave one of her properties for rent in Mumbai in 2018-19 to Carol Info Services Ltd for Rs 7 lakh. Then, Buch was a full-time member of Sebi.

He said that Carol Info Services Ltd was affiliated to Wockhardt Limited, which is being investigated by Sebi in several cases, including one of insider trading. Khera also said that both the companies had the same promoters.

The Congress leader claimed that Madhabi Buch received Rs 2.16 crore from Carol Info Services Ltd as rent from 2018-19 to 2023-24.

Giving a break-up of the rent received by Buch, Khera said, "In 2018-19, the rent for this property was Rs 7 lakh. In 2019-20, it increased to 36 lakh. In 2023-24, she received a rent of Rs 46,05,000 from the firm."

"Madhabi Puri Buch is the chairperson of the same organisation (Sebi) that had complaints against Wockhardt before it. There was a case of insider trading too," Khera said.

The fresh charge by the Congress comes days after the party accused the Sebi chief of holding an office of profit at ICICI Bank and receiving an income of Rs 16.80 crore between 2017 and 2024 after she became a full-time member of the market regulator.

The ICICI Bank has, in a statement, denied paying any salary or granting any ESOPs (Employee Stock Ownership Plans) to Madhabi Buch after her retirement from the bank, even though the Sebi chief has not commented on the issue yet.

Meanwhile, the Public Accounts Committee (PAC) of Parliament, headed by Congress MP KC Venugopal, is likely to summon the Sebi chairperson during a performance review of regulatory bodies, sources told India Today.