Government Arresting Opposition Through ED & CBI, But Will ED & CBI Take Action On Such Scam Allegations Against SEBI Chairperson Madhabi Puri Buch?

In recent years, the use of enforcement agencies like the Enforcement Directorate and the Central Bureau of Investigation (ED and CBI) has sparked intense debate and scrutiny, particularly regarding their role in political and financial matters. The ED and CBI have frequently been in the spotlight for their actions against political opponents and dissenting voices. However, an intriguing development has emerged involving Madhabi Puri Buch, the current Chairperson of the Securities and Exchange Board of India (SEBI). Allegations have surfaced against her, raising questions about whether these agencies will act impartially in this case.

The Role of ED and CBI.

The ED and CBI are two of India’s premier investigative agencies. The ED focuses primarily on economic crimes and money laundering, while the CBI handles a broader spectrum of criminal investigations, including corruption, organised crime, and other serious offences. Their powers include conducting raids, interrogations, and initiating prosecutions.

Historically, these agencies, the ED and CBI, have been accused of political bias for the last few years. Critics argue that their actions often seem aligned with the ruling party’s interests, and opposition leaders have frequently been targeted during periods of political tension. The instrumental use of ED and CBI to suppress dissent or discredit opponents has raised serious concerns about the impartiality and effectiveness of these institutions.

Many arrests are examples that support the opinion ‘how ED and CBI have shown an action of political biases’ as in the majority of the cases, either the charges are alleged, which means they are considered wrong, but they have not been proved; still people are kept in jail; or any other cases, as soon as opposition leaders joined BJP, the charges against them has been dropped. 

What raises doubts in the case of the Hindenburg-Adani-SEBI chief and spouse? Premier investigative agencies like the ED and CBI should investigate.

Shell entities—Repeatedly in their reports, Hindenburg mentioned shell entities that were used for suspected billions of dollars of undisclosed related party transactions, undisclosed investment, and stock manipulation. Therefore, if proven true, this is a case of money laundering, endangering the money of the Indian public.

Territories that are openly described as a tax havens– The Hindenburg report often describes territories such as Bermuda and Mauritius, which are openly described as tax havens. So, proper investigation needs to be done as to why the airport to edible conglomerate, the Adani group, has connections in these regions.

IIFL- It is observed that these nested funds are managed by Indian Infoline (“IIFL”), now called 360 One per private fund data and IIFL’s marketing material. In its latest note, Hindenburg Research has alleged that IIFL has a history of setting up convoluted fund structures and has been involved in controversies and scandals in the past, including Germany’s Wirecard scandal.

This is not the first time IIFL has found itself at the receiving end regarding allegations related to governance levels. In the recent past, both RBI and SEBI have pulled up IIFL for violations of the regulatory framework put in place by the banking and capital markets watchdogs. So, isn’t it possible that this IIFL, which two Indian regulators earlier scolded, may again do something that violates the rules of the Indian market and harm the financials of the Indian public? Hence, proper investigation should be done by Indian agencies to safeguard the interests of Indian investors.

Last but not least- The PM of India, Shri Narendra Modi himself, in one of his election campaigns, asked publicly pointing to now LOP Shri Rahul Gandhi about ‘why he stopped using Adani-Ambani in his speeches, claiming whether Adani-Ambani has given him tempo loads of money?’ This statement by the supreme leader of Indian democracy itself paves the way for questioning the integrity of these conglomerates, and hence, the premier investigative agencies like ED and CBI should intervene in these matters and do proper investigations, again for safeguarding the interests of Indian citizens.

Conclusion

The allegations against SEBI Chairperson Madhabi Puri Buch have added a new dimension to the ongoing debate about the role and effectiveness of the ED and CBI. As these agencies navigate the complexities of this case, the need for impartiality and adherence to legal norms will be under scrutiny. The result of this investigation will not only impact Buch and SEBI but also serve as a critical test for the credibility and independence of India’s enforcement agencies.

Historical attempts can be seen where many such transactions have taken place, doubting the integrity of large corporates that have taken bucks of funds from Indian markets/ banks and then escaped the country, making the common Indian man suffer the consequences of their wrongdoings. So, to avoid any such future incidents, it’s recommended that the Indian agencies take proactive actions to safeguard the interests of the Indian public.

Ultimately, the integrity of the ED and CBI—and the broader justice system, aka the great Indian Judiciary—hinges on their ability to act without bias, regardless of the individuals involved. As such, handling this case will be a significant indicator of the current state of governance and accountability in India.