Dhaval Buch Hired by Major Firms; Companies Counter Congress Claims

Mahindra & Mahindra, Dr. Reddy’s Laboratories, and Pidilite Industries announced on Tuesday that they had employed Dhaval Buch for his expertise. This follows accusations from the Congress party against his wife, Sebi Chairperson Madhabi Puri Buch, of a conflict of interest.

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At a press conference, Congress media head Pawan Khera referred to a Hindenburg report alleging that Madhabi Buch held 99% shares in Agora Advisory Pvt Ltd. The firm, incorporated on May 7, 2013, claims to offer various consultancy services.

Congress Allegations

Congress general secretary Jairam Ramesh questioned if Prime Minister Narendra Modi knew about Buch's 99% stake in Agora Advisory Pvt Ltd. He also highlighted that Dhaval Buch received Rs 4.78 crore from Mahindra Group while Madhabi Buch was adjudicating cases involving the same group.

The Congress party listed companies that used Agora Advisory's services, including Mahindra & Mahindra Ltd, Dr. Reddy’s, Pidilite, ICICI, Sembcorp, and Visu Leasing and Finance. They claimed this raised concerns about potential conflicts of interest.

Company Responses

Mahindra & Mahindra Ltd denied any conflict of interest in a regulatory filing. They stated that Dhaval Buch joined the group nearly three years before Madhabi Buch became Sebi chairperson. The company emphasised that his compensation was solely for his supply chain expertise and management skills gained at Unilever.

Dr. Reddy’s Laboratories also responded to the allegations. They said they hired Dhaval Buch for leadership coaching from October 2020 to April 2021 for Rs 6.58 lakh. "We routinely engage external coaches to enable significant role transitions of our leaders," Dr. Reddy’s stated. They added that the assignment ended before Madhabi Buch's term as Sebi Chairperson began.

Pidilite Industries clarified their engagement with Dhaval Buch during FY 2019-20 for his supply chain and procurement expertise. They noted that there were no inquiries or cases from Sebi concerning the company.

Further Clarifications

Mahindra & Mahindra further clarified that none of the five Sebi orders or approvals mentioned in the allegations were relevant to them or their subsidiaries. They described the charges as false and misleading.

Dr. Reddy’s reiterated that any suggestion of preferential treatment by Sebi due to their engagement with Dhaval Buch was baseless and malicious. They affirmed their compliance with all applicable laws.

Pidilite Industries echoed similar sentiments, stating they engage with multiple renowned professionals as part of their routine requirements. They confirmed no issues with Sebi regarding their operations.

The controversy continues as these companies defend their decisions to hire Dhaval Buch while dismissing any conflict of interest claims related to Madhabi Puri Buch's role at Sebi.