Wockhardt Refutes Congress Allegations of Rental Payments to SEBI Chairperson Madhabi Puri Buch

Wockhardt, a prominent pharmaceutical company, on Saturday, September 7, denied allegations made by the Congress party that it had made rental payments to Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), through its affiliate, Carol Info Services. The company also rejected claims of any connection between the rental payments and orders issued by SEBI in relation to its affiliate.

In an official filing to the stock exchanges, Wockhardt stated, “We categorically deny these allegations, which are baseless and misleading. The company has acted and continues to act in compliance with all applicable laws.”

These allegations emerged after Congress leader Pawan Khera accused Buch of receiving rental income from Carol Info Services, a Wockhardt affiliate, while SEBI was investigating the company for insider trading. According to Khera, Buch received ₹2.16 crore in rental payments between 2018 and 2024 during her tenure as a whole-time member and later as SEBI chairperson.

Khera described the situation as a clear case of corruption and conflict of interest, asserting that Buch violated SEBI’s 2008 code on conflicts of interest. He called on Buch to address the accusations, stating that the Congress had documents showing that SEBI orders involving Wockhardt were passed by a single adjudicating officer, Vijayant Kumar Verma.

Khera further highlighted that previous SEBI chairpersons had taken strict measures to avoid even the appearance of a conflict of interest, and questioned whether Buch had followed the same standards. He pointed out that while holding office at SEBI, Buch was also receiving income from ICICI Bank, raising additional concerns about conflicts of interest.

The controversy has impacted Wockhardt’s stock performance, with its shares falling five percent on Friday, closing at ₹1,034.55 on the National Stock Exchange. The drop came amid a broader market decline, with the Nifty 50 index losing 1.17 percent.

As of now, SEBI has not responded to the allegations publicly.