The Apartment in Question
The Indian National Congress has accused Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch of renting out an apartment she jointly owns with her spouse to a firm linked to multinational pharmaceutical and biotechnology company Wockhardt. The apartment in question is located in the luxury residential complex Vivarea in central Mumbai's Mahalaxmi area.
According to Congress spokesperson Pawan Khera, Buch and her husband rented the apartment to Carol Info Services Ltd, a subsidiary of Khorakiwala Holdings and Investments Private Ltd (KHIPL), in 2018-19. KHIPL is owned by the Khorakiwala family, who also own Wockhardt.
Khera claims that the rent for the apartment increased significantly during the period that Buch was Sebi chairperson. In 2018-19, the rent was Rs 7 lakh. In 2019-20, it increased to Rs 36 lakh. In 2023-24, Buch received a rent of Rs 46 lakh from the firm.
The Congress alleges that this increase in rent occurred at a time when Sebi was investigating Wockhardt Ltd for alleged insider trading. They claim that this suggests a "quid pro quo" between Buch and Wockhardt.
Buch's Response
Buch has denied the allegations, stating that the rental rates were "completely in line with market rates." She also said that the property was leased out in the normal course and that she has not dealt with any files related to Wockhardt.
Buch added that all necessary disclosures were made to SEBI at the time of her appointment as a whole-time director in 2017.
Wockhardt's Response
Wockhardt has also denied the allegations, stating that they are "completely baseless and misleading." The company said that it has acted and continues to act in compliance with all applicable laws.
Conclusion
The allegations against Buch are serious and raise questions about her impartiality as Sebi chairperson. However, it is important to note that these are just allegations and that Buch has denied any wrongdoing. It is important to wait for the results of any investigation before drawing any conclusions.