India's Mahindra, Dr Reddy's deny conflict in payments to India regulatory chief's husband (updated)

Pidilite Industries

10/09/2024 14:42

(Adds clarification from two more companies on
payments/engaging services of regulatory chief's husband in
paragraph 1,7,8,9,10)
       MUMBAI, Sept 10 (Reuters) - Indian automaker Mahindra &
Mahindra  MAHM.NS  and pharmaceutical company Dr Reddy's
Laboratories  REDY.NS  said on Tuesday they had paid the husband
of a senior regulatory official for work when she held the
second highest office at the country's market regulator, but
denied any conflict of interest.
    India's main opposition party Congress on Tuesday alleged
that Dhaval Buch, husband of Madhabi Puri Buch who now heads the
Securities and Exchange Board of India (SEBI), earned 47.8
million rupees ($569,251) from Mahindra at a time when the
regulator was investigating it for market infractions.
    Congress did not provide any proof for its allegations. 
    In a disclosure to stock exchanges on Tuesday, Mahindra
said: "Compensation has been specifically and only for Mr.
Buch's supply chain expertise and management acumen, based on
his global experience.         
    "We categorically state that we have not, at any point,
requested SEBI (Securities and Exchange Board of India) for any
preferential treatment," Mahindra said.
    The company added that they considered allegations made by a
political party "false and misleading in nature". 
    Separately, two other listed companies Dr Reddy's
Laboratories  REDY.NS , Pidilite Industries  PIDI.NS  also
informed stock exchanges that they had engaged the services of
Buch when his wife held second highest office at SEBI but denied
allegations of any conflict. 
    Dr Reddy's paid 658,000 Indian rupees to Buch in exchange of
his services, the company said. 
    "Any suggestion that the company was treated differently by
SEBI as a result of this would be baseless and mala fide," Dr
Reddy's said.
    Pidilite said that it has never been under any SEBI
enquiries or orders. 
    Email queries sent to SEBI's spokesperson and Buch were not
immediately answered. 
    The finance ministry, which oversees the markets regulator,
did not respond to questions on whether it believes the
allegations warranted an investigation. 
    Buch has been at the centre of a storm following accusations
by Hindenburg Research that she and her husband previously held
investments in offshore funds also used by the Adani Group,
which is being investigated by the regulator. She has denied the
accusations.
    The Congress party, which held protests across the country
last month, has sought Buch's resignation.
    Prime Minister Narendra Modi's government has refused to
give in to the opposition's demands.
    
    ($1 = 83.9700 Indian rupees)

 (Reporting by Jayshree P Upadhyay; Editing by Kim Coghilland
David Evans)
 ((Jayshree.Pyasi@thomsonreuters.com; 9920092491; Reuters
Messaging: Twitter: @jaysh88))