Friday saw Wockhardt’s shares take a sharp dip, dropping 5% to close at Rs 1,034.60 per share on the BSE. This downturn trailed closely behind explosive allegations hurled by the Congress party against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (Sebi).
Congress has accused Buch of entangled interests involving Wockhardt, a well-known pharmaceutical company, in a scandal causing ripples across financial circles.
In a dramatic twist, Congress revealed that Buch had been pocketing rental income from Carol Info Services Limited, a firm intricately connected to Wockhardt, which itself has been under Sebi’s scrutiny for issues like insider trading.
The crux of the allegations rests on a property that Buch, who stepped into Sebi’s fold as a Whole Time Member in 2018, leased out to Carol Info Services Limited. The rental income from this property ballooned from a modest Rs 7 lakh in 2018-19 to a staggering Rs 46 lakh this year.
Congress’ official statement claims that between 2018 and 2024, Buch amassed a total of Rs 2.16 crore in rental earnings from Carol Info Services Limited. This company, with roots dating back to 1979 and led by Dr Habil Khorakiwala, falls under the umbrella of the Wockhardt group, with a whopping 92% stake held by Khorakiwala Holdings and Investments Private Limited.
ALSO READ: Sebi Tightens Derivative Rules Amid Investor Pushback
Amid the growing storm, Congress did not mince words, suggesting Sebi’s ongoing investigations into Wockhardt—including probes into insider trading are marred by what they describe as “corruption.” They have raised pointed questions about the ethical and legal propriety of Buch’s financial ties to Carol Info Services Limited, emphasizing the sizable sums she has received over the last six years.
These revelations’ implications cast long shadows over Sebi’s integrity and Buch’s tenure, setting the stage for a contentious showdown in finance and governance.
To know more, click here.
