Hindenburg Research, a U.S.-based short-selling firm known for previously accusing Indian industrialist Gautam Adani of fraud, has now made serious allegations against the Securities and Exchange Board of India (SEBI). The firm alleges that SEBI Chairman Madhavi Puri Buch is connected to the Adani scandal and claims there is a financial relationship between her and the Adani Group. Hindenburg argues that this supposed connection accounts for the regulator's inaction regarding the Adani Group over the past 18 months. Hindenburg asserts that Madhavi Puri Buch and her husband, Dhaval Buch, invested in offshore companies linked to the Adani scandal. The report states that they opened an account in IPE Plus Fund 1, an offshore fund based in Mauritius, on June 5, 2015, with a $10 million investment. Hindenburg claims this fund was set up by an Adani Group director through India Infoline and is registered in Mauritius, a well-known tax haven.
In response, the Adani Group denied any financial ties to SEBI Chairman Madhavi Puri Buch, labeling Hindenburg's allegations as false and defamatory. They assert that previous claims against the Adani Group have been thoroughly investigated and found to be baseless. SEBI Chairman Madhavi Puri Buch has also reacted to the accusations, calling them unfounded in a statement released on Sunday morning. She reaffirmed that the claims are baseless and emphasized that SEBI operates transparently in its investigations. The situation remains contentious as Hindenburg Research's allegations add further complications to the ongoing scrutiny of the Adani Group.