Facts need to be taken on board: FM Nirmala Sitharaman on Buch row

FM said that Buch, along with her husband, had answered quite a few of the allegations levelled against her by the Congress party and have put forth the facts

Union Finance Minister Nirmala Sitharaman on Monday said that facts need to be taken on board in the context of the controversy involving chairperson of Securities and Exchange Board of India (Sebi) Madhabi Puri Buch.

Speaking at a News18 event, the finance minister said that Buch along with her husband had answered quite a few of the allegations levelled against her by the Congress party and both of them have put forth the facts.

“Quite a few of the allegations are being answered by her and by her husband. Both of them together are defending themselves and putting facts to contradict those which have been alleged by the Congress. So, the facts will have to be taken on board,” Sitharaman said.

On September 13, the Buchs rebutted the accusations made by the main opposition party in a six-page letter, their second detailed response since short-seller Hindenburg first made allegations of conflict of interest in early August.

Madhabi and her husband Dhaval Buch rubbished allegations of conflict of interest, corruption and lack of transparency, particularly with regard to the income generated from her ex-employer, the ICICI Group, and other corporate entities through their consultancy firm Agora Advisory.

On being asked what she thought of the response of the Buchs on the allegations, Sitharaman said, “I am not here to judge (their answers).”

Talking on the gross domestic product (GDP) growth numbers of the first quarter, the finance minister said the public expenditure, which was muted in the April-June quarter of FY25 due to the election, will pick up in the subsequent quarters and trigger growth in the country. On keeping the fiscal deficit target of 4.5 per cent of GDP in FY26, the finance minister said, “I am confident and hopeful of being within the target.”

She said the new tax regime was brought in to simplify compliance and hence exemptions were removed. More than 78 per cent people moved from the old to the new tax regime, she said, adding: “We are looking at various ways in which the middle class will be given benefits.”

Sitharaman highlighted that it was important to take care of the small traders and retailers since their businesses are getting affected due to “predatory pricing and deep pockets”. “We will have to give it a serious thought. The commerce minister is seized of the matter,” she added.

The finance minister also said that every state and the Centre will have to understand what their budgets are capable of in terms of development schemes and freebies before making announcements. “They announce schemes and freebies, and then struggle to implement as they do not have resources. Karnataka and Himachal Pradesh are examples of it,” she added.