Mahindra Group Denies Allegations, Calls Payment Claims To Dhaval Buch 'False And Misleading'

SEBI scandal: Mahindra group clarified that he joined the company nearly three years before his wife, Madhabi Puri Buch, was appointed SEBI chairperson

SEBI scandal: The Mahindra Group has issued a clarification regarding allegations raised by the Congress party, which suggested a conflict of interest in payments made to Dhaval Buch, the husband of Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI).

In a filing to the stock exchange on Tuesday, Mahindra stated that the compensation paid to Dhaval Buch was solely for his expertise in supply chain management, stemming from his extensive global experience at Unilever. The company noted that the payments were strictly based on professional merit. "We categorically state that we have not, at any point, requested SEBI for any preferential treatment," the statement read, describing the allegations as "false and misleading" without directly naming any political party.

Dhaval Buch serves on the board of Bristlecone, a subsidiary of Mahindra & Mahindra (M&M). The company further clarified that he joined Mahindra nearly three years before his wife, Madhabi Puri Buch, was appointed SEBI chairperson. "His compensation is directly related to his supply chain expertise and global management experience," Mahindra reiterated.

Earlier in the day, the Congress party alleged that Dhaval Buch and Madhabi Puri Buch had continued to receive payments from Mahindra, amounting to Rs 4.78 crore between 2019 and 2021. Congress leader Pawan Khera claimed that SEBI issued four orders related to M&M during this period.

Madhabi Puri Buch, first appointed as SEBI's whole-time member in April 2017, stepped down in October 2021 before returning as chairperson in March 2022. Both SEBI and the Buchs have issued separate statements refuting the accusations, calling them baseless and a targeted attempt at character assassination.

Meanwhile, Madhabi Puri Buch has garnered strong support from her IIM-Ahmedabad batchmates, who have dismissed the allegations against her as baseless. Buch, a 1988 graduate of the renowned institute, faces accusations her peers consider unfounded.

In a collective statement, Buch's batchmates expressed concern that the allegations could not only tarnish her personal reputation but also erode the trust in a key democratic institution. After consulting "individuals familiar with the matter" and examining publicly available documents, they concluded that the claims, allegedly drawn from her income tax returns, are "clearly false."