Opposition And BJP MPs Spar over Summoning SEBI Chief Madhabi Puri Buch before Public Accounts Committee – News18

Opposition lawmakers had a war of words with Bharatiya Janata Party MPs in a meeting of Parliament’s Public Accounts Committee (PAC) on Tuesday over summoning Madhabi Puri Buch, chairperson of market regulator Securities and Exchange Board of India (SEBI).

The development came to light after a senior member of Parliament from Trinamool Congress, Professor Saugata Roy, wrote a letter to the chairman of the committee, Congress Lok Sabha lawmaker KC Venugopal.

Roy urged Venugopal to summon the SEBI chief suo moto to the meeting which was scheduled for Tuesday because, he said, the working of the regulatory body and activities involving Buch and her conduct recently were of urgent public importance.

However, sources said BJP MP Nishikant Dubey in the meeting cited parliamentary rules to contend that such a demand to summon an authority like this was not allowed. Dubey argued that the PAC can only examine the finances of the government with respect to various ministries, etc, but cannot examine the functioning of a regulatory board and its staff. To summon an office bearer of the SEBI would require the committee to get permission from the government of India itself, he said.

“The functions of the Committee, as enshrined in Rule 308(1) of the Rules of Procedure and Conduct of Business in Lok Sabha, include examination of accounts showing the appropriation of sums granted by Parliament for the expenditure of the Government of India, the annual finance accounts of the Government and such other accounts laid before the House as the Committee may think fit. In scrutinising the Appropriation Accounts of the Government of India and the Report of the Comptroller & Auditor General of India,” says the rule cited by Dubey.

It further states, “An important function of the Committee is to ascertain that money granted by Parliament has been spent by Government ‘within the scope of the demand’. The implications of this phrase are that (i) money recorded as spent against the grant must not be more than the amount granted, (ii) the expenditure brought to account against a particular grant must be of such a nature as to warrant its record against the grant and against no other, and iii) the grants should be spent on purposes which are set out in the detailed demand and they cannot be spent on ‘any new service not contemplated in the demand’. The functions of the Committee extend ‘beyond the formality of expenditure to its wisdom, faithfulness and economy’. The Committee thus examines cases involving losses, nugatory expenditure and financial irregularities. When any case of proved negligence resulting in loss or extravagance is brought to the notice of the Committee, it calls upon the Ministry/Department concerned to explain what action, disciplinary or otherwise, it had taken to prevent a recurrence. In such a case it can also record its opinion in the form of disapproval or pass strictures against the extravagance or lack of proper control by the Ministry or Department concerned. Another important function of the Committee is the discussion on points of financial discipline and principle. The detailed examination of questions involving principle and system is a leading and recognized function of the Committee. The Committee is not concerned with questions of policy in the broad sense. As a rule, it expresses no opinion on points of general policy, but it is within its jurisdiction to point out whether there has been extravagance or waste in carrying out that policy.”

Comptroller and Auditor General of India (CAG) GC Murmu, who was also present before the committee on Tuesday, agreed with the BJP MP’s arguments.

Sources earlier indicated that the Congress MPs in the committee had hinted that they would summon the SEBI chief and question her in particular on the functioning of the regulatory body after the grand old party unearthed some controversies around Buch’s appointment.

In the meeting, Jharkhand MP Dubey also contended that Parliament functions on set norms and procedures. He also reminded other colleagues that the PAC is one of the oldest committees.

During the argument, PAC chairperson Venugopal agreed that the decision of the committee would be final.

Madhabi Puri Buch has been facing allegations of conflict of interest. A Hindenburg report first highlighted this, and it was later picked up by the Congress, which did several press conferences, challenging her appointment. She has faced questions about her as well as her husband’s connections with businessman Gautam Adani. So far, the SEBI chief has categorically denied all the allegations.