Madhabi Buch, the current chairperson of the Securities and Exchange Board of India (SEBI), and her husband Dhaval Bch, owned stakes in obscure offshore entities that were allegedly used by the Adani Group for “fraudulent activities, including stock manipulation and undisclosed related party transactions”, a new report published by the US-based short seller Hindenburg Research has claimed.

The Hindenburg Research alleged that Gautam Adani’s brother Vinod Adani was also involved in this very fund. He used a complex structure involving multiple offshore funds to launder these funds. One such fund, the IPE Plus Fund, registered in Mauritius, is at the center of the controversy.

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Citing whistleblower documents, the report said the Buchs were also involved in this very fund and opened an account with the IPE Plus Fund in June 2015.

It has been nearly 18 months since Hindenburg’s original report accused the conglomerate of operating “the largest con in corporate history”, detailing how the group allegedly utilised a web of offshore shell entities based in Mauritius and other tax havens to engage in billions of dollars worth of undisclosed transactions.

“Despite the evidence presented and corroborated by over 40 independent media investigations, SEBI has taken no significant public action against the Adani Group,” the short seller said in the new report.

This failure, according to Hindenburg, may be linked to “Buch’s own complicity in using the same funds that are now under scrutiny.”

The report also claims that during her tenure as a SEBI member, Buch continued to engage with the fund, redeeming units through her husband’s account.

“Conflict Or Capture? Either Way, We Do Not Think SEBI Can Be Trusted As An Objective Arbiter In The Adani Matter…We think our findings raise questions that merit further investigation,” the Hindenburg Research concluded.

The latest report comes a little over one month after SEBI issued a show cause notice “outlining suspected violations of Indian regulations”.

At that time, the short seller had alleged that the regulator came to Adani Group’s aid after the January 2023 report claiming the conglomerate was involved in stock manipulation and other financial irregularities.