Lokpal Clean Chit To Buch Vindicates Adani Group’s Stance, All Charges ‘Baseless’ — Key Points

The Lokpal of India's dismissal of complaints alleging impropriety and conflict of interest against former SEBI chief Madhabi Puri Buch also vindicates the position of Adani Group in the entire row. The allegations stemmed from a report released by the now-shut US-based short seller Hindenburg Research in 2024.

The report of Hindenburg was not deemed reliable or sufficient to base a corruption case.

In the order issued on Wednesday, the Lokpal found that the complaints against Buch were largely based on conjecture and failed to meet the legal threshold required under the Prevention of Corruption Act, 1988.

The anti-graft ombudsman examined five key allegations against Buch — including alleged investments linked to the Adani Group, quid pro quo disguised as consultancy fees and rental income, undue gains from ICICI Bank ESOPs, and a pretence of recusal from certain cases.

The Lokpal found no merit in any of these claims and dismissed them in their entirety.

The disposal of the complaints vindicated the market conduct of Adani Group companies as no wrongdoing or manipulation has been found by any competent authority so far — from the SEBI to the Supreme Court to the Lokpal.

Here are the key takeaways from the Lokpal's order:

• The Lokpal found no credible evidence of "undue advantage" or "quid pro quo" in the allegations against Buch. It concluded that the complaints were based on "presumptions and assumptions and not supported by any verifiable material."

• The order confirmed that SEBI's investigations and regulatory decisions, particularly concerning the Adani Group, have been upheld by the Supreme Court and independent institutional mechanisms. The Lokpal stated, "...the effectiveness of the investigations and action taken by SEBI against the Adani Group of companies has commended to the Supreme Court. That cannot be reopened directly or indirectly..."

• The Lokpal explicitly dismissed the Hindenburg report as an unreliable basis for a corruption case. It noted that the report, authored by a known short-seller, "by itself cannot be made the sole basis to escalate action against the RPS [Relevant Public Servant]... allegations... are untenable, unsubstantiated and bordering on frivoulity."

• All three complaints were dismissed, with the allegations termed as vexatious, frivolous, and politically motivated attempts to sensationalise regulatory matters. The complainants were indirectly cautioned for trivialising the process before the Lokpal.

• The order, in a way, affirms that the allegations of regulatory favouritism involving the Adani Group were completely baseless. It highlights that the complaints against Buch were an attempt to target the Adani Group through politically motivated means, stating, "The complainant by making such unverified and flimsy or fragile allegations, only to sensationalize or so to say politicize the matter, has inevitably trivialized the process before the Lokpal. It is nothing short of vexatious proceedings..."