The capital market regulator chief Madhabi Puri Buch's termed fresh statement on allegations against her as false and malicious. She denied of rental income from Wockhardt and the property was leased out in the normal course. “The lessee happened to be an associate of Wockhardt, a listed company which had come under investigation. Madhabi has not dealt with any files related to Wockhardt,” claimed SEBI spokesperson.
The Congress party had last week alleged that the SEBI Chairperson had earned more than Rs 2 crore as rent from a firm linked to the Wockhardt Group. While Wockhardt refuses to comment on the allegations, Madhabi Puri Buch called the allegations 'defamatory, false and vexatious'.
The tony luxury central Mumbai high rise apartment in Tower D of Vivarea at Mahalaxmi was occupied by Wockhardt Hospitals Managing Director Zahabiya Khorakiwala and Wockhardt Chairman Habil Khorakiwala owned jointly by Madhabi and Dhaval Buch.
The luxury apartment was leased out in 2018-19 to Carol Info Services Ltd, a subsidiary of Khorakiwala Holdings and Investments Private Ltd (KHIPL) when when SEBI was investigating Wockhardt Ltd for alleged insider trading.
SEBI denied the allegations and stated apartment was leased in FY20 when the probe into Wockhardt insider trading had not even started and the first showcause notice to Wockhardt was issued on September 05, 2022 adding that the assertion on the rental rates were “off market” are patently false.
“The rental agreement for the property in question was concluded in accordance with standard market practices and the rental income from the property was completely in line with market rates,” asserted the SEBI statement.
The directors of KHIPL are Habil Fakhruddin Khorakiwala, Murtaza Habil Khorakiwala and Nafisa Habil Khorakiwala.
Vivarea is a luxury residential project spread across 14 acres comprising of five towers having three and four-bedroom apartments offering a majestic view of the Arabian Sea and the Mumbai skyline. The real estate portals list prices of flats ranging from Rs 15 crore Rs 50 crore each. The rentals for a three bedroom apartment of 2,000 sq. ft. costs Rs 5 lakh a month and goes up to Rs 7.5-8 lakh for a 3,000 sq. ft. four bedroom apartment.
The SEBI chief further clarified she had no conflict of interest while investigating several top listed entities.
"Madhabi has never dealt with any file involving Agora Advisory, Agora Partners, the Mahindra Group, Pidilite, Dr Reddy’s, Alvarez and Marsal, Sembcorp, Visu Leasing or ICICI Bank at any stage after her joining SEBI," and further added since joining SEBI as a whole time member in 2017, Madhabi Puri Buch consistently disclosed her shareholding in Agora Advisory. The statement asserted she has also transparently declared her shareholding in Agora Partners. “As evident from the above facts and the communications from the companies, the allegations are completely false, malicious and defamatory.” reads the statement.
