The Mahindra Group has called the allegations suggesting conflict of interest on payments to Dhaval Buch, husband of Madhabi Buch, as false and misleading, adding that Buch was hired for his expertise in supply chain and none of the Sebi approvals that the business group received, as mentioned in the allegations are relevant.
In a filing to the stock exchange, the Mahindra Group said that the compensation made to Dhaval Buch were made for his supply chain expertise and management acumen, based
on his global experience at Unilever.
“We categorically state that we have not, at any point, requested SEBI for any preferential treatment,” the statement said, calling the allegations ‘false and misleading in nature’, without naming any political party.
Earlier in the day, Congress had made fresh allegations, claiming that Madhabi and husband Dhaval Buch had continued to earn from the advisory firm. Congress leader Pawan Khera in his statement had mentioned about Agora Advisory – a company held by Sebi chairperson Madhabi and her husband – which was claimed as dormant, but received funds from Mahindra and Mahindra between 2019-21, while she was a whole-time member of SEBI.
Congress alleged that in this period, there were favourable orders issued to M&M. “During this period, SEBI had also issued several orders in favour of Mahindra & Mahindra,” a charge that has been denied by the business group. “None of the 5 SEBI orders or approvals referenced in the allegations are relevant,” said Mahindra Group’s statement.
Mahindra Group clarified that out of the five orders, three did not pertain to the company or any of its subsidiary. One of the approvals was for a fast-track rights issue, which did not require any approval from SEBI, and another one pertained to an order issued in 2018, before Dhaval started working with the Mahindra Group.
Mahindra Group said Dhaval Buch was hired in 2019 for his expertise in supply chain and sourcing, after he retired as Unilever’s Global Chief Procurement Officer. Most part of his stint at Mahindra Group was at Bristlecone, a supply chain consulting subsidiary, where Dhaval Buch is currently on the Board of the company. Mr Buch had joined Mahindra Group almost three years before Madhabi Puri Buch was appointed as SEBI Chairperson, the statement by Mahindra Group added.
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