The anti-corruption ombudsman Lokpal has dismissed complaints of impropriety and conflict of interest against former SEBI chief Madhabi Puri Buch. These allegations, which included a complaint from Trinamool MP Mahua Moitra, stemmed from a Hindenburg Research report published on August 10, 2024. The report claimed that Buch and her husband held stakes in obscure offshore funds allegedly used in a money-siphoning scandal involving the Adani Group. Buch and her husband, along with the Adani Group, had vehemently denied these allegations, calling them an attack on SEBI's credibility and a character assassination attempt.

The Lokpal, in its Wednesday order, concluded that the complaints were based on "presumptions and assumptions" and lacked any verifiable material. A six-member bench led by Lokpal chairperson Justice A.M. Khanwilkar stated that the charges did not warrant an investigation. The Lokpal specifically highlighted that the Hindenburg report, authored by a "known short seller trader whose focus was to expose or corner Adani Group of Companies," could not be the sole basis for action against Buch.

Furthermore, the Lokpal found that even attempts by the complainants to present allegations independently of the Hindenburg report were "untenable, unsubstantiated and bordering on frivolity." This decision followed a process initiated in November last year when the Lokpal sought an explanation from Ms. Buch, to which she responded in December 2024. Subsequently, oral hearings were held in April, allowing both Ms. Buch and the complainants to present their arguments.

Around 68% corruption complaints against public functionaries that landed with the Lokpal were “disposed off” without any action in the past four years. Only three complaints were fully investigated, according to information provided by the Lokpal’s office to a parliamentary panel.

Madhabi Puri Buch served as the chief of the Securities and Exchange Board of India (SEBI) from March 2, 2022, until her tenure completed on February 28, 2025. It is also notable that Hindenburg Research's founder announced the closure of the firm in January of this year, prior to this Lokpal ruling.