SEBI Chairperson and Husband Address Allegations Over Rental Income from Mumbai Apartment

Mumbai, 13th September 2024: On Friday, SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, issued a comprehensive response to allegations concerning rental income from their jointly-owned luxury apartment in central Mumbai.

The controversy arose after reports suggested that the apartment had been rented to Carol Info Services Ltd, a company affiliated with Wockhardt, a pharmaceutical firm currently under SEBI investigation. This led to speculation about a potential conflict of interest.

In their statement, the Buchs clarified that the lease was arranged “in the normal course of business” and noted that Carol Info Services Ltd, the lessee, is associated with Wockhardt. They emphasized that Madhabi Puri Buch had not handled any files related to Wockhardt during her time at SEBI. The Buchs highlighted that investigations and surveillance are managed by designated officials by the Delegation of Powers.

They described the allegations as defamatory, false, and malicious, asserting that the rental agreement adhered to standard market practices, with all income declared and taxes paid. They stressed that the rental rates were consistent with market rates and refuted claims that the rates were “off-market,” pointing out that all necessary disclosures had been made to SEBI since Madhabi’s appointment as a Whole-Time Member in 2017.

The controversy intensified after Congress spokesperson Pawan Khera claimed that the Buchs had received over ₹2 crore in rent from the apartment between 2018 and 2024, coinciding with SEBI’s investigation into Wockhardt for insider trading. Khera suggested that the rental arrangement indicated a possible “quid pro quo.”

Reports also indicated that the luxury apartment in Mumbai’s Vivarea complex was occupied by Wockhardt executives, including Zahabiya Khorakiwala, Managing Director of Wockhardt Hospitals, and Habil Khorakiwala, Wockhardt’s Chairman. Congress alleged that the rental income had increased from ₹7 lakh in 2018-19 to ₹46 lakh in 2023-24, questioning the timing of SEBI’s investigation into Wockhardt.

In response to these claims, Wockhardt issued a statement denying any misconduct. The company described the allegations as “completely baseless and misleading” and reaffirmed its commitment to compliance with all relevant laws.

The allegations come amidst heightened media scrutiny following high-profile property transactions at Vivarea, further amplifying public interest in the issue.