After ICICI Bank's recent clarification regarding Congress' claims around SEBI Chief Madhabi Puri Buch receiving a hefty sum of money, Mahindra & Mahindra has also issued its own statement.
Mahindra & Mahindra has called the allegations made by Congress against both the auto giant and SEBI Chief as "false and misleading in nature."
"There are several allegations made by a political party today i.e. September 10, 2024 which was covered by several news agencies. The allegations suggest conflict of interest on payments made to Mr. Dhaval Buch, husband of Mrs. Madhabi Buch, SEBI Chairperson," Mahindra and Mahindra stated in its regulatory filing.
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The political party had alleged that Buch held a 99 per cent stake in a company that offered consultancy services to the Mahindra and Mahindra Group. The party also claimed that her husband earned Rs 4.78 crore from the conglomerate while she was handling cases involving the same group.
The auto company has issued a seven-point clarification addressing these claims.
1. Mahindra Group hired Mr. Dhaval Buch in 2019 specifically for his expertise in supply chain and sourcing, soon after he retired as Unilever's Global Chief Procurement Officer.
2. He has spent most of his time at Bristlecone, a subsidiary which is a supply chain consulting company. Mr. Buch is currently on the Board of Bristlecone.
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3. He joined Mahindra Group almost 3 years before Ms. Madhabi Puri Buch was appointed as SEBI Chairperson.
4. Compensation has been specifically and only for Mr. Buch’s supply chain expertise and management acumen, based on his global experience at Unilever.
5. None of the 5 SEBI orders or approvals referenced in the allegations are relevant. Details are:
- three out of the five approvals or orders of SEBI do not pertain to the Company or any of its subsidiaries.
- one was a fast-track rights issue, which did not require any approval from SEBI.
- one was an order issued in Mar 2018, well before Mr. Dhaval started working with the Mahindra Group.
6. We categorically state that we have not, at any point, requested SEBI for any preferential treatment. We maintain the highest standards of corporate governance.
7. We consider these allegations false and misleading in nature.
