A special Anti-Corruption Bureau (ACB) court in Mumbai has directed the police to register a First Information Report (FIR) against former Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and three of its whole-time members, along with two senior officials of the Bombay Stock Exchange (BSE).

The court's directive comes in response to a complaint filed under Section 156(3) of the Code of Criminal Procedure (CrPC) by journalist Sapan Shrivastava.

The complaint alleges collusion and regulatory lapses in the fraudulent listing of Cals Refineries Ltd on the stock exchange, causing significant investor losses.

Officials Named in FIR

Apart from Buch, the FIR has been ordered against Ashwani Bhatia, Anant Narayan G, and Kamlesh Varshney—who served as SEBI’s whole-time members—along with BSE Director Sundararaman Ramamurthy and Public Interest Director Pramod Agarwal.

Special Judge S.E. Bangar observed that the complaint prima facie indicates a “cognizable offence” and directed the ACB to file the FIR under relevant provisions of the Indian Penal Code (IPC), the Prevention of Corruption (PC) Act, and the SEBI Act. The court has asked for a status report on the investigation within 30 days.

Complaint Alleges Fraudulent Listing, Regulatory Lapses

Shrivastava, in his complaint, claimed that Buch, in coordination with SEBI and BSE officials, facilitated the fraudulent listing of Cals Refineries Ltd and failed to take action against its financial misconduct. He alleged that he and his family invested in shares of the company in 1994 but suffered substantial losses due to regulatory inaction.

According to the court’s order, Shrivastava has presented substantial material, including documented complaints filed with SEBI, law enforcement agencies, and other authorities, along with acknowledgments of receipt. Additionally, whistleblower correspondence from within SEBI reportedly suggests “undue favouritism” towards the accused company.

SEBI Responds, Calls Complainant a “Frivolous Litigant”

In response to the court’s order, SEBI issued a statement in defence of Buch, who retired as chairperson on February 28. The regulatory body dismissed the allegations, describing the complainant as a “frivolous and habitual litigant” whose past applications had been rejected by the courts, sometimes with penalties imposed. SEBI also announced plans to challenge the court’s order legally.

This is not the first time Buch has faced controversy. In August 2024, US short-seller firm Hindenburg Research alleged that she and her husband, Dhavan Buch, had undisclosed offshore investments linked to the Adani Group.

The report claimed that the Buchs had stakes in Bermuda and Mauritius-based funds connected to Vinod Adani, brother of industrialist Gautam Adani. It further alleged that Buch owned a Singapore-based consulting firm, Agora Partners, which was later transferred to her husband without publicly disclosing its financial details.

Both Buch and her husband denied these allegations, and no action was taken against them by Indian investigating agencies.

With the court-ordered FIR, the ACB is now set to investigate charges including criminal breach of trust, cheating, forgery, and conspiracy.