Godrej Consumer Products MD and CEO Sudhir Sitapati has expressed his backing for Dhaval Buch, husband of Sebi Chairperson Madhabi Puri Buch, in light of ongoing conflict of interest accusations. Sitapati utilized LinkedIn to address the situation, characterizing it as a clash between the private and public sectors, underscoring the challenges that arise when professionals transition from the private sector to government roles.
The controversy surrounding Dhaval and Madhabi Puri Buch originated from allegations suggesting potential conflicts of interest due to Dhaval providing consultancy services to companies while his wife was leading Sebi. Sitapati, who had a long-standing professional relationship with Dhaval at Hindustan Unilever (HUL), defended his integrity and reputation, noting that the compensation he received for consulting assignments was standard in the private sector but appeared suspicious in a government context. The debate escalated when reports surfaced regarding a substantial payment Dhaval received for consulting, raising concerns about possible quid pro quo arrangements with Sebi-regulated firms.
Sitapati articulated broader concerns regarding the stigma associated with private sector professionals transitioning to government roles, warning against the implications of dissuading such talent from engaging in public service. He emphasized the value of private sector expertise in government affairs, highlighting the need to overcome biases against private enterprises for the benefit of India's progress. The discussion also touched on the differing principles guiding the private and government sectors, with Sitapati explaining the nuances of transparency and adherence to rules in each domain to avoid suspicion and controversy.
The controversy, ignited by allegations from the Congress party, implicated Madhabi Puri Buch in financial impropriety, alongside claims of Dhaval Buch's companies profiting from consulting assignments while Sebi was investigating related firms. Despite the accusations, Madhabi Puri Buch vehemently denied any wrongdoing, asserting her compliance with disclosure requirements and recusal guidelines in dealings involving companies associated with her husband. She denounced the claims as unfounded and driven by malicious intent.