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1-4 How does being alumnus of IIM Ahmedabad help? Or of IIT Delhi. Do they hand our lifetime certificates of honesty?
5-6 What they do in 2015 is of no one’s concern. Point is what you did after joining SEBI in April 2017. When you mention that Anil Ahuja was a childhood friend of Dhaval, you forget to mention that he was also on Adani’s flagship company as a director since 2009. Was it not appropriate to recuse from an investigation of Adanis when such a close friend of the Buchs was associated with Adani since 2007. Why did you make investments into GDOF an opaque investment vehicle when public and transparent mutual funds or AIFs are available? Getting certificates of honesty from Anil Ahuja or from 360 One (regulated by SEBI) would hardly suffice.
https://economictimes.indiatimes.com/industry/banking/finance/banking/from-citi-to-3i-to-hindenburgs-crosshairs-the-many-lives-of-banker-turned-investor-anil-ahuja/articleshow/112449420.cms?from=mdr
1. When did Mr. Ahuja make this confirmation? To who? Was he not a director on Adani Enterprises in 2017 when MPB became Whole Time Member of SEBI?
2. Since when does Blackstone do ‘supply chain management’ related work? Are there any other examples of Blackstone hiring ‘supply chain managers’ and that too at such senior positions? Why did this need arise in 2019 when MPB was member of SEBI’s board. Was there a need for this expertise before 2019 - or did the need suddenly arise after SEBI appointment? Who are the other experts Blackstone has required in this area before 2019? What advice was obtained and what payments were made to Dhaval over the course of 2017 to 2024? The question is not whether Dhaval was associated with real estate side of Blackstone. It was whether he was paid large sums of money to get access to MPB. How many meetings has Blackstone had with senior officers of SEBI, or with MPB?
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4. What is this recusal list. Is it only maintained with SEBI? Why not publish it in public domain, like all public companies do? Is this list shared with the Govt of India? Did they approve it? Like SEBI has extensive norms for related party permissions, including shareholder approval, did MPB get any permissions for RPTs from say the Govt of India or from her SEBI Board? Or did she ask SEBI for permission, which she heads and then gave herself permission?
5. There are no insinuations that MPB only favoured Blackstone for Reits matters alone. The insinuation is that she favoured all matters related to Blackstone - directly or through her subordinates. All meetings of Blackstone with SEBI officers since 2017 should be disclosed.
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7. The consulting companies set up did not become dormant. In fact one of them provided income from 2017 to 2024. In 2023 the ‘consulting firm’ provided income 4 times her salary at SEBI. This was not a passive income from mutual funds. It was in fact ‘consulting’ income paid to her husband. The husband claims to have no other expertise in life except ‘supply chain management’ but the consulting firm’s articles don’t show that even as a legitimate permissible activity. Agora’s permissible activities are ‘Legal, accounting, book-keeping and auditing activities; tax consultancy; market research and public opinion polling; business and management consultancy’. What legal and accounting expertise does Dhaval have to earn such massive sums of money? Also the company’s address is a dabba address where many other companies and LLPs are registered. What does Shah and Savla LLP also registered there do? What does Aarnaira Development Foundation also at same address with Dhaval as director do? Same articles to get consulting fees in another account?
8. -14 Paying tax on ‘consulting’ or disclosure does not help convert them into legitimate income. Even in 2019 when MPB was a member of SEBI, the near sole shareholder and thus sole beneficiary of the ‘consulting’ firm was MPB. There is no disclosure in public domain - disclosing to her own organisation smacks of complete compromise of integrity and self dealing in complete contrast to related party norms applicable to listed companies.
9. Sending a show cause to Hindenberg does not exempt MPB or Dhaval to ignore basic laws of FCPA and conflict. At the least, these are extraordinary lapses of judgment. These charges must be defended on merits, whether or not Hindenberg is motivated by other factors or not.