NEW DELHI: Sebi chief Madhabi Puri Buch and husband Dhaval on Friday issued a strong rebuttal to all the allegations that the Congress party had levelled against them, including charges of conflict of interest. Buchs presented detailed facts behind each of the points raised earlier by the opposition party, including their relationships with four listed entities__ICICI Bank and its group companies, Pidilite, an arm of Wockhardt, and Mahindra & Mahindra.
Without naming the Congress party or any individual associated with it, Buchs pointed out that the allegations were based on their income tax returns that were definitely obtained illegally. They said they had the right to seek legal recourse as the allegations were malicious and were presented by deliberately twisting facts.
Read the full statement here:
This statement is being made in our personal capacity.
Over the past many days, there have been numerous questions raised, and malicious campaigns run, about our integrity. In this statement, we address these questions with facts.
Consulting Assignments of Dhaval Buch: It is unfortunate that questions have been raised regarding the consulting assignments of Dhaval Buch and the firms Agora Advisory in India and Agora Partners in Singapore. There seems to be an assumption that when a spouse of a senior government official is appointed as an advisor, it must be attributed to factors beyond professional merit. Such assumptions overlook the strength of qualifications and expertise and reach conclusions that are most unfortunate.
Dhaval is an engineer from IIT Delhi and has 35 years of experience, including as an Executive Director on the Board of Hindustan Unilever which he joined in 1984. He retired in 2019 from Unilever as the Global Head of Procurement where he was responsible for $40 bn per annum of procurement for Unilever across the globe. Prior to that he ran the entire Unilever Supply Chain in Asia and Africa consisting of 120 factories. He has his own strong reputation as a leading professional in his field.
Post his retirement, Dhaval started working with Mahindra & Mahindra in 2019 based on his merits and experience much prior to Madhabi being appointed as Chairperson of SEBI. Mahindra & Mahindra, which accounted for 94% of the entire operating income of Agora Advisory since 2019, had this to say:
““Mahindra Group hired Mr. Dhaval Buch in 2019 specifically for his expertise in supply chain and sourcing….. He joined Mahindra Group almost 3 years before Ms. Madhabi Puri Buch was appointed as SEBI Chairperson…….None of the 5 Sebi orders or approvals referenced in the allegations are relevant. Details are :
Three out of the five approvals or orders of SEBI do not pertain to the company or any of its subsidiaries. One was a fast-track rights issue, which did not require any approval from SEBI. One was an order issued in March 2018, well before Mr Dhaval Buch started working with the Mahindra Group…… We consider these allegations false and misleading”
Pidilite, which accounted for about 4% of the operating income of Agora Advisory since 2019, had this to say
“At Pidilite, we engage with multiple partners and consultants who are renowned professionals in their respective fields. As part of its routine requirements, the company had engaged Agora Advisory’s Dhaval Buch, a globally renowned supply chain and procurement professional, for his services in these areas……. We further state that there have never been any cases from SEBI vis a vis Pidilite”
Dr. Reddys, that accounted for the balance operating income, publicly stated
”We routinely engage external coaches to enable significant role transitions of our leaders. Mr. Dhaval Buch’s work in India and globally for Unilever was well-suited to coach the identified leader in our Company, and the remuneration paid to Mr. Buch was in line with that of other coaches……. The assignment started and ended well before Ms Madhabi Buch’s term as SEBI Chairperson. Any suggestion that the Company was treated differently by SEBI as a result of this would be baseless and malafide”
Alvarez & Marsal, who account for 100% of the operating income of Agora Partners in Singapore, have this to say on their website
“Dhaval Buch is a Senior Advisor with Alvarez and Marsal in Singapore. He brings over 30 years of experience in supply chain and procurement….”
And goes on to give details of his resume and a paper authored by Dhaval.
Despite the transparency and professional clarity given by these organizations, it is unfortunate that the need to justify decisions taken by such respected companies, based purely on Dhaval’s expertise, has to be undertaken by them and by us. The strength of his qualifications and long years of experience should be sufficient, and questions about the motivations behind the decisions taken by these companies are unfortunate and defamatory not just for Dhaval, but for these respected companies as well.
The most recent allegations allege that Agora Advisory had provided services to two more companies – Sembcorp and Visu Leasing – while Madhabi was a Whole Time Member (WTM) of SEBI. This too is patently false. These assignments were concluded and income accrued in 2016-2017, before Madhabi even joined SEBI as Whole Time Member.
Further, it has been claimed that ICICI Bank also paid Agora. What was concealed , is the fact that these were interest payments on deposits. Ascribing motive to it is unfortunate and defamatory.
As already stated in our previous communication, after Dhaval’s retirement, he undertook his consulting practice under the two companies Agora Advisory and Agora Partners. Dhaval’s consulting assignments were undertaken under a company structure so as to transparently isolate the income so generated and report accruals and expenses related to these assignments, as separate from his personal income and expenses. It is unfortunate that a process that actually facilitates greater transparency is being sought to be projected as suspicious.
In keeping with the highest standards of governance, Madhabi has never dealt with any file involving Agora Advisory, Agora Partners, the Mahindra Group, Pidilite, Dr Reddy’s, Alvarez and Marsal, Sembcorp, Visu Leasing or ICICI Bank at any stage after her joining SEBI. As evident from the above facts and the communications from the companies, the allegations are completely false, malicious and defamatory.
Madhabi has complied with all the disclosure and recusal guidelines of SEBI, and in fact, maintained a proactive continuing recusal list with SEBI over and above the requirements under the guidelines.
Over and above all of the aforesaid, right from 2017, when Madhabi joined SEBI as a Whole Time Member, she had disclosed the fact of her shareholding in Agora Advisory as well as in Agora Partners.
Rental Income:
There have been questions raised regarding the rental income received from a property owned by Madhabi and Dhaval. The property was leased out in the normal course. As it turned out subsequently, the lessee happened to be an associate of Wockhardt, a listed company which had come under investigation. Madhabi has not dealt with any files related to Wockhardt. Given the all-India remit of SEBI’s responsibilities, which encompass hundreds of investigations, thousands of surveillance alerts, hundreds of approvals, and hundreds of orders annually, the Chairperson is usually not even aware of specific cases, as they are handled in the normal course by other designated officials as per Delegation of Powers which have always been in place . In this context, even an allegation of conflict is not only defamatory, false and vexatious, but is clearly malicious and motivated.
SEBI operates under a clear and well-defined Delegation of Powers, ensuring that investigations are handled in accordance with established procedures. For investigations, various powers are vested in senior officials such as Chief General Managers, Executive Directors, or Whole-Time Members. Accordingly, no investigation files go to the Chairperson.
It is highlighted that the rental agreement for the property in question was concluded in accordance with standard market practices and this property jointly owned by Madhabi and Dhaval is leased and the rental from the same is declared and tax paid accordingly. A simple internet search and analysis would show that the rental income from the property was completely in line with market rates. The assertion that the rental rates were “off market” are patently false.
All necessary disclosures have been made to SEBI in writing right from Madhabi’s appointment as a Whole-Time Member in 2017, including details about the property’s market value and the rental income derived from it.
Making such baseless allegations reflects a clear disregard for the comprehensive legal framework and mechanisms that govern public institutions like SEBI and are motivated to mislead the public. Such allegations, devoid of factual support, seek to tarnish the reputation of individuals, respected corporates , as well as institutions of the country.
ICICI Bank-related matters:
Several questions have been raised regarding Madhabi’s Employee Stock Options (ESOPs) from ICICI Bank. The true and factual situation is detailed below.
With respect to the baseless allegations concerning the exercise of Employee Stock Options ( ESOPs), it is completely false that the options are to be exercised only in 3 months. The fact is that the provisions of ICICI Bank’s ESOP scheme were different for resigning and retiring employees. Madhabi retired from ICICI Bank. Like other senior ICICI Group employees, Madhabi received ESOPs during her tenure. Only employees who resigned were required to exercise their vested options within 3 months. Those who retired ( like Madhabi) were allowed to exercise their vested options for up to 10 years. As already confirmed by ICICI Bank in its public statement, Madhabi retired from ICICI Bank, which allowed her a 10-year window to exercise her options.
With respect to the baseless allegation concerning the uneven nature of pension amounts with gaps in between, the fact is that the pension payments were consistent. They were part of a contributory Annuity Scheme from ICICI Prudential. The uneven amounts related to exercise of ESOPs at various stages over the ten years. Depending on when Madhabi exercised her options and the prevailing market prices at the relevant time and the quantity of ESOPs exercised, the perquisite value is bound to vary each year. If no ESOPs were exercised in a given year, there would be zero value attached to it and this would be bound to be reflected in the returns as a gap year.
This perquisite value is required to be filed under the “Salary” category both by ICICI Bank and by the ex-employee. This is a clear law of the land.
With respect to the baseless allegation concerning payment of TDS by ICICI Bank, the fact is that ICICI Bank did not pay TDS from its own funds. Instead, when an employee or ex-employee exercises their options, ICICI Bank collects the required Perquisite Tax (for TDS) from the individual upfront and pays the same to the tax authorities. This was the process followed with Madhabi as well – ie Madhabi paid her own Perquisite Tax, upfront.
With respect to the baseless allegations regarding holding ESOPs while serving at SEBI, it is to be noted that SEBI’s guidelines permit board members, including the Chairperson, to hold and transact in ESOPs. Requisite disclosures and recusals are to be made. Madhabi had disclosed her ESOP holdings since 2017 when she first joined SEBI, and disclosed each subsequent transaction. This forms a part of contemporaneous official records of SEBI.
Madhabi has never dealt with any files related to the ICICI Group of Companies during her tenure.
With regard to the baseless allegations of moonlighting while employed with ICICI Bank, the fact is that Madhabi did not engage in any unauthorized external employment while working at ICICI Bank. In 2011, she was granted long leave ( unpaid ) by the Bank to join her husband who was working in Singapore at that point of time. During her time there, in Singapore, with ICICI Bank’s full and prior approval, she took up a position with a Private Equity Firm in Singapore. When it became clear in 2013 that she would remain in Singapore, she superannuated from ICICI Bank as per the Bank’s rules. The Private Equity firm, in turn, was also fully aware of the fact that she was in Singapore on long leave taken from ICICI Bank. The arrangement was completely legal, transparent, and equally transparently was displayed on the LinkedIn profile of Madhabi.
Conclusion:
The above facts clearly show that all the allegations made are false, incorrect, malicious and motivated. The allegations themselves are based on our Income Tax Returns. In other words, all these matters are a part of our income tax returns in which all these matters have been fully disclosed and taxes have been duly paid.
Shockingly, our income tax returns clearly have been obtained by adopting fraudulent means and illegally. This is a clear breach of not only our right to privacy (which is a fundamental right) but also a violation of the Income Tax Act.
The facts, transparently reflected in our income tax returns, have been twisted deliberately to create a false narrative.
Further, going by the pattern of creating a false narrative at periodic intervals, it appears that the allegations are being made in instalments, only to keep the pot boiling. If the objective had been to arrive at the truth rather than to malign individuals and institutions with distortions of facts, we wonder why all allegations would not be brought out, in public, at one go. We would then have given all the facts at one go.
If, however, this false narrative is motivated, to achieve some other objective, then the possibility of further allegations being made repeatedly in instalments in the future may not be ruled out.
We are upright and honest professionals and have led our respective professional lives with transparency and dignity, earning an unblemished record. Though everyone can see a clear pattern emerging to distort and twist the facts, we are confident that we will be able to demolish all such motivated allegations even in future, while reserving our right to take appropriate legal remedy as we may be advised.
The fact that so far, allegations are being made with new falsehoods each time, in instalments, makes it clear that the only intention is to keep distorting facts, to keep making false allegations again and again to build a false narrative. Clearly, arriving at the truth is not the objective.
Madhabi Puri Buch Dhaval Buch
13th September 2024
In their six-page joint statement Buchs said that from the pattern of periodic disclosure of allegations it appeared that the objective was to “keep the pot boiling”. If the objective was to present the truth and not just to “malign individuals and institutions with distortions of facts,” all the allegations would have been brought out at one go. “We would then have given all the facts at one go,” they said in the statement.
“The fact that so far, allegations are being made with new falsehoods each time, in instalments, makes it clear that the only intention is to keep distorting facts, to keep making false allegations again and again to build a false narrative. Clearly, arriving at the truth is not the objective,” they said.
Among others, the statement also shaded light on the finances of Agora Partners, the Singapore-registered entity, for the first time. They said that all the money that Agora Partners received was for Dhaval’s consultancy for Alvarez & Marsal in Singapore. Alvarez & Marsal is a US-headquartered global consultancy firm.
It was on Aug 11 that the US-based short-seller Hindenburg Research for the first time had pointed out about the two advisory firms owned by the couple, the Singapore one and Agora Advisory, an Indian entity. Since then, the finances of the Indian entity had come out, mostly from the database of Registrar of Companies.
Relating to money received from ICICI Bank and group companies, the statement said that the stock options that Madhabi received years after her retirement from the group were as per its policies for retired employees. They also clarified that the money received from ICICI Prudential Life Insurance were part of the annuity plan that she had subscribed to while working for ICICI Bank. The payments were coming in now.
About the allegations that while the Sebi chief exercised her options under the bank’s ESOP, payment of TDS was borne by the bank, they said that as per the lender’s policies TDS was paid by the employees to the bank who in turn remitted it to the govt. For Buch also the same process was followed.
The statement also reiterated what M&M, Wockhardt and Pidilite had (separately) said earlier, denying allegations against each of the entities, with facts.
In the joint statement Buchs said that the facts presented by them clearly showed that all the allegations that were made earlier were “false, incorrect, malicious and motivated”.
“The allegations themselves are based on our Income Tax returns. In other words, all these matters are a part of our income tax returns in which all these matters have been fully disclosed and taxes have been duly paid. Shockingly, our income tax returns clearly have been obtained by adopting fraudulent means and illegally. This is a clear breach of not only our right to privacy (which is a fundamental right) but also a violation of the Income Tax Act.”
They said that the facts which were transparently disclosed in their income tax returns were “twisted deliberately to create a false narrative.”
Without naming the Congress party or any individual associated with it, Buchs pointed out that the allegations were based on their income tax returns that were definitely obtained illegally. They said they had the right to seek legal recourse as the allegations were malicious and were presented by deliberately twisting facts.
Read the full statement here:
This statement is being made in our personal capacity.
Over the past many days, there have been numerous questions raised, and malicious campaigns run, about our integrity. In this statement, we address these questions with facts.
Consulting Assignments of Dhaval Buch: It is unfortunate that questions have been raised regarding the consulting assignments of Dhaval Buch and the firms Agora Advisory in India and Agora Partners in Singapore. There seems to be an assumption that when a spouse of a senior government official is appointed as an advisor, it must be attributed to factors beyond professional merit. Such assumptions overlook the strength of qualifications and expertise and reach conclusions that are most unfortunate.
Dhaval is an engineer from IIT Delhi and has 35 years of experience, including as an Executive Director on the Board of Hindustan Unilever which he joined in 1984. He retired in 2019 from Unilever as the Global Head of Procurement where he was responsible for $40 bn per annum of procurement for Unilever across the globe. Prior to that he ran the entire Unilever Supply Chain in Asia and Africa consisting of 120 factories. He has his own strong reputation as a leading professional in his field.
Post his retirement, Dhaval started working with Mahindra & Mahindra in 2019 based on his merits and experience much prior to Madhabi being appointed as Chairperson of SEBI. Mahindra & Mahindra, which accounted for 94% of the entire operating income of Agora Advisory since 2019, had this to say:
““Mahindra Group hired Mr. Dhaval Buch in 2019 specifically for his expertise in supply chain and sourcing….. He joined Mahindra Group almost 3 years before Ms. Madhabi Puri Buch was appointed as SEBI Chairperson…….None of the 5 Sebi orders or approvals referenced in the allegations are relevant. Details are :
Three out of the five approvals or orders of SEBI do not pertain to the company or any of its subsidiaries. One was a fast-track rights issue, which did not require any approval from SEBI. One was an order issued in March 2018, well before Mr Dhaval Buch started working with the Mahindra Group…… We consider these allegations false and misleading”
Pidilite, which accounted for about 4% of the operating income of Agora Advisory since 2019, had this to say
“At Pidilite, we engage with multiple partners and consultants who are renowned professionals in their respective fields. As part of its routine requirements, the company had engaged Agora Advisory’s Dhaval Buch, a globally renowned supply chain and procurement professional, for his services in these areas……. We further state that there have never been any cases from SEBI vis a vis Pidilite”
Dr. Reddys, that accounted for the balance operating income, publicly stated
”We routinely engage external coaches to enable significant role transitions of our leaders. Mr. Dhaval Buch’s work in India and globally for Unilever was well-suited to coach the identified leader in our Company, and the remuneration paid to Mr. Buch was in line with that of other coaches……. The assignment started and ended well before Ms Madhabi Buch’s term as SEBI Chairperson. Any suggestion that the Company was treated differently by SEBI as a result of this would be baseless and malafide”
Alvarez & Marsal, who account for 100% of the operating income of Agora Partners in Singapore, have this to say on their website
“Dhaval Buch is a Senior Advisor with Alvarez and Marsal in Singapore. He brings over 30 years of experience in supply chain and procurement….”
And goes on to give details of his resume and a paper authored by Dhaval.
Despite the transparency and professional clarity given by these organizations, it is unfortunate that the need to justify decisions taken by such respected companies, based purely on Dhaval’s expertise, has to be undertaken by them and by us. The strength of his qualifications and long years of experience should be sufficient, and questions about the motivations behind the decisions taken by these companies are unfortunate and defamatory not just for Dhaval, but for these respected companies as well.
The most recent allegations allege that Agora Advisory had provided services to two more companies – Sembcorp and Visu Leasing – while Madhabi was a Whole Time Member (WTM) of SEBI. This too is patently false. These assignments were concluded and income accrued in 2016-2017, before Madhabi even joined SEBI as Whole Time Member.
Further, it has been claimed that ICICI Bank also paid Agora. What was concealed , is the fact that these were interest payments on deposits. Ascribing motive to it is unfortunate and defamatory.
As already stated in our previous communication, after Dhaval’s retirement, he undertook his consulting practice under the two companies Agora Advisory and Agora Partners. Dhaval’s consulting assignments were undertaken under a company structure so as to transparently isolate the income so generated and report accruals and expenses related to these assignments, as separate from his personal income and expenses. It is unfortunate that a process that actually facilitates greater transparency is being sought to be projected as suspicious.
In keeping with the highest standards of governance, Madhabi has never dealt with any file involving Agora Advisory, Agora Partners, the Mahindra Group, Pidilite, Dr Reddy’s, Alvarez and Marsal, Sembcorp, Visu Leasing or ICICI Bank at any stage after her joining SEBI. As evident from the above facts and the communications from the companies, the allegations are completely false, malicious and defamatory.
Madhabi has complied with all the disclosure and recusal guidelines of SEBI, and in fact, maintained a proactive continuing recusal list with SEBI over and above the requirements under the guidelines.
Over and above all of the aforesaid, right from 2017, when Madhabi joined SEBI as a Whole Time Member, she had disclosed the fact of her shareholding in Agora Advisory as well as in Agora Partners.
Rental Income:
There have been questions raised regarding the rental income received from a property owned by Madhabi and Dhaval. The property was leased out in the normal course. As it turned out subsequently, the lessee happened to be an associate of Wockhardt, a listed company which had come under investigation. Madhabi has not dealt with any files related to Wockhardt. Given the all-India remit of SEBI’s responsibilities, which encompass hundreds of investigations, thousands of surveillance alerts, hundreds of approvals, and hundreds of orders annually, the Chairperson is usually not even aware of specific cases, as they are handled in the normal course by other designated officials as per Delegation of Powers which have always been in place . In this context, even an allegation of conflict is not only defamatory, false and vexatious, but is clearly malicious and motivated.
SEBI operates under a clear and well-defined Delegation of Powers, ensuring that investigations are handled in accordance with established procedures. For investigations, various powers are vested in senior officials such as Chief General Managers, Executive Directors, or Whole-Time Members. Accordingly, no investigation files go to the Chairperson.
It is highlighted that the rental agreement for the property in question was concluded in accordance with standard market practices and this property jointly owned by Madhabi and Dhaval is leased and the rental from the same is declared and tax paid accordingly. A simple internet search and analysis would show that the rental income from the property was completely in line with market rates. The assertion that the rental rates were “off market” are patently false.
All necessary disclosures have been made to SEBI in writing right from Madhabi’s appointment as a Whole-Time Member in 2017, including details about the property’s market value and the rental income derived from it.
Making such baseless allegations reflects a clear disregard for the comprehensive legal framework and mechanisms that govern public institutions like SEBI and are motivated to mislead the public. Such allegations, devoid of factual support, seek to tarnish the reputation of individuals, respected corporates , as well as institutions of the country.
ICICI Bank-related matters:
Several questions have been raised regarding Madhabi’s Employee Stock Options (ESOPs) from ICICI Bank. The true and factual situation is detailed below.
With respect to the baseless allegations concerning the exercise of Employee Stock Options ( ESOPs), it is completely false that the options are to be exercised only in 3 months. The fact is that the provisions of ICICI Bank’s ESOP scheme were different for resigning and retiring employees. Madhabi retired from ICICI Bank. Like other senior ICICI Group employees, Madhabi received ESOPs during her tenure. Only employees who resigned were required to exercise their vested options within 3 months. Those who retired ( like Madhabi) were allowed to exercise their vested options for up to 10 years. As already confirmed by ICICI Bank in its public statement, Madhabi retired from ICICI Bank, which allowed her a 10-year window to exercise her options.
With respect to the baseless allegation concerning the uneven nature of pension amounts with gaps in between, the fact is that the pension payments were consistent. They were part of a contributory Annuity Scheme from ICICI Prudential. The uneven amounts related to exercise of ESOPs at various stages over the ten years. Depending on when Madhabi exercised her options and the prevailing market prices at the relevant time and the quantity of ESOPs exercised, the perquisite value is bound to vary each year. If no ESOPs were exercised in a given year, there would be zero value attached to it and this would be bound to be reflected in the returns as a gap year.
This perquisite value is required to be filed under the “Salary” category both by ICICI Bank and by the ex-employee. This is a clear law of the land.
With respect to the baseless allegation concerning payment of TDS by ICICI Bank, the fact is that ICICI Bank did not pay TDS from its own funds. Instead, when an employee or ex-employee exercises their options, ICICI Bank collects the required Perquisite Tax (for TDS) from the individual upfront and pays the same to the tax authorities. This was the process followed with Madhabi as well – ie Madhabi paid her own Perquisite Tax, upfront.
With respect to the baseless allegations regarding holding ESOPs while serving at SEBI, it is to be noted that SEBI’s guidelines permit board members, including the Chairperson, to hold and transact in ESOPs. Requisite disclosures and recusals are to be made. Madhabi had disclosed her ESOP holdings since 2017 when she first joined SEBI, and disclosed each subsequent transaction. This forms a part of contemporaneous official records of SEBI.
Madhabi has never dealt with any files related to the ICICI Group of Companies during her tenure.
With regard to the baseless allegations of moonlighting while employed with ICICI Bank, the fact is that Madhabi did not engage in any unauthorized external employment while working at ICICI Bank. In 2011, she was granted long leave ( unpaid ) by the Bank to join her husband who was working in Singapore at that point of time. During her time there, in Singapore, with ICICI Bank’s full and prior approval, she took up a position with a Private Equity Firm in Singapore. When it became clear in 2013 that she would remain in Singapore, she superannuated from ICICI Bank as per the Bank’s rules. The Private Equity firm, in turn, was also fully aware of the fact that she was in Singapore on long leave taken from ICICI Bank. The arrangement was completely legal, transparent, and equally transparently was displayed on the LinkedIn profile of Madhabi.
Conclusion:
The above facts clearly show that all the allegations made are false, incorrect, malicious and motivated. The allegations themselves are based on our Income Tax Returns. In other words, all these matters are a part of our income tax returns in which all these matters have been fully disclosed and taxes have been duly paid.
Shockingly, our income tax returns clearly have been obtained by adopting fraudulent means and illegally. This is a clear breach of not only our right to privacy (which is a fundamental right) but also a violation of the Income Tax Act.
The facts, transparently reflected in our income tax returns, have been twisted deliberately to create a false narrative.
Further, going by the pattern of creating a false narrative at periodic intervals, it appears that the allegations are being made in instalments, only to keep the pot boiling. If the objective had been to arrive at the truth rather than to malign individuals and institutions with distortions of facts, we wonder why all allegations would not be brought out, in public, at one go. We would then have given all the facts at one go.
If, however, this false narrative is motivated, to achieve some other objective, then the possibility of further allegations being made repeatedly in instalments in the future may not be ruled out.
We are upright and honest professionals and have led our respective professional lives with transparency and dignity, earning an unblemished record. Though everyone can see a clear pattern emerging to distort and twist the facts, we are confident that we will be able to demolish all such motivated allegations even in future, while reserving our right to take appropriate legal remedy as we may be advised.
The fact that so far, allegations are being made with new falsehoods each time, in instalments, makes it clear that the only intention is to keep distorting facts, to keep making false allegations again and again to build a false narrative. Clearly, arriving at the truth is not the objective.
Madhabi Puri Buch Dhaval Buch
13th September 2024
In their six-page joint statement Buchs said that from the pattern of periodic disclosure of allegations it appeared that the objective was to “keep the pot boiling”. If the objective was to present the truth and not just to “malign individuals and institutions with distortions of facts,” all the allegations would have been brought out at one go. “We would then have given all the facts at one go,” they said in the statement.
“The fact that so far, allegations are being made with new falsehoods each time, in instalments, makes it clear that the only intention is to keep distorting facts, to keep making false allegations again and again to build a false narrative. Clearly, arriving at the truth is not the objective,” they said.
Among others, the statement also shaded light on the finances of Agora Partners, the Singapore-registered entity, for the first time. They said that all the money that Agora Partners received was for Dhaval’s consultancy for Alvarez & Marsal in Singapore. Alvarez & Marsal is a US-headquartered global consultancy firm.
It was on Aug 11 that the US-based short-seller Hindenburg Research for the first time had pointed out about the two advisory firms owned by the couple, the Singapore one and Agora Advisory, an Indian entity. Since then, the finances of the Indian entity had come out, mostly from the database of Registrar of Companies.
Relating to money received from ICICI Bank and group companies, the statement said that the stock options that Madhabi received years after her retirement from the group were as per its policies for retired employees. They also clarified that the money received from ICICI Prudential Life Insurance were part of the annuity plan that she had subscribed to while working for ICICI Bank. The payments were coming in now.
About the allegations that while the Sebi chief exercised her options under the bank’s ESOP, payment of TDS was borne by the bank, they said that as per the lender’s policies TDS was paid by the employees to the bank who in turn remitted it to the govt. For Buch also the same process was followed.
The statement also reiterated what M&M, Wockhardt and Pidilite had (separately) said earlier, denying allegations against each of the entities, with facts.
In the joint statement Buchs said that the facts presented by them clearly showed that all the allegations that were made earlier were “false, incorrect, malicious and motivated”.
“The allegations themselves are based on our Income Tax returns. In other words, all these matters are a part of our income tax returns in which all these matters have been fully disclosed and taxes have been duly paid. Shockingly, our income tax returns clearly have been obtained by adopting fraudulent means and illegally. This is a clear breach of not only our right to privacy (which is a fundamental right) but also a violation of the Income Tax Act.”
They said that the facts which were transparently disclosed in their income tax returns were “twisted deliberately to create a false narrative.”