The anti-corruption body headed by former Supreme Court judge Justice AM Khanwilkar said that the Lokpal cannot act solely based on the Hindenburg research report which raised allegations of quid pro quo against the SEBI Chief Madhabi Puri Buch on the ground that she had investments in offshore funds linked to Adani group of companies. One of the complaints was filed by Lok Sabha MP Mahua Moitra.
Regarding Moitra’s complaint, Lokpal said that it was primarily founded on the Hindenburg report and “it falls short of persuading us to take a firm view that there exists a prima facie case as per Section 20 of the Lokpal and Lokayuktas Act 2013 to proceed in the matter including to direct a preliminary inquiry or investigation…”
As regards the other complaint, the Lokpal said that the complainant has rushed to file the complaint soon after downloading the Hindenburg report and merely reproduced the factual narrative in the report without verifying its contents and collating credible material.
The Lokpal asked the complainants to explain the efforts taken by them to verify the authenticity and credibility of the Hindenburg report and to show how the acts alleged against the SEBI Chief would come under the ambit of the Prevention of Corruption Act.
Refusing to accept the Hindenburg Report published on August 8 on its face value, the Lokpal has deferred action on two complaints filed against the Chairperson of the Securities and Exchange Board of India (SEBI), asking the complainants to produce additional “foundational and jurisdictional facts.”
