Dhaval Buch, a senior advisor at Blackstone and Alvarez & Marsal, has been thrust into the spotlight following a report by Hindenburg Research. The report alleges that Buch and his wife, SEBI Chairperson Madhabi Buch, were involved in offshore funds connected to a financial scandal involving the Adani Group. The allegations have ignited controversy and prompted strong denials from Buch and his wife.
Buch boasts a distinguished career in finance and consulting. He previously served as the Chief Executive Officer of Bristlecone and Interim President, Group Technology for the Mahindra Group. Before these roles, he held a prominent position at Unilever, where he was the Chief Procurement Officer and oversaw the supply chain for Asia and Africa. Buch is also a non-executive director on the Board of Gildan, an apparel retailer.
Hindenburg Research alleges that Buch and his wife held stakes in offshore funds linked to the Adani Group’s alleged money siphoning scheme. These funds are reportedly registered in Bermuda and Mauritius. Buch, however, has vehemently denied these claims, asserting that his financial dealings are transparent and all necessary disclosures have been made to SEBI.
The report further suggests that Buch’s association with Blackstone might have influenced SEBI’s decisions, as the regulator facilitated regulatory changes beneficial to private equity firms like Blackstone. Buch has maintained that his financial dealings are completely separate from his wife’s role at SEBI and is willing to disclose all financial documents, including those from before his wife’s appointment at SEBI, to any relevant authority.
Madhabi Buch, as SEBI Chairperson, is the owner of 99% of Agora Advisory, a consulting firm where Dhaval Buch is a director. The firm reportedly earned $261,000 in revenue in 2022, exceeding Madhabi Buch’s disclosed salary at SEBI. This has raised concerns about potential conflicts of interest.
In response to the allegations, SEBI has initiated enforcement action against Hindenburg Research, including issuing a show cause notice to the firm. The Buchs believe that the recent allegations are a retaliatory attempt at character assassination in response to SEBI’s actions against Hindenburg.
The situation surrounding Dhaval Buch and the Adani Group scandal remains a developing story, with both sides sticking to their claims. Further investigation and legal action are anticipated, and the outcome could have significant implications for the financial sector and the regulatory environment in India.
