• Anti-corruption ombudsman Lokpal disposed of complaints against former SEBI chief Madhabi Puri Buch based on a Hindenburg Research report, terming the charges as “presumptions and assumptions not supported by any verifiable material”.

• Buch, who took over as the chief of the Securities and Exchange Board of India (SEBI) on March 2, 2022, demitted office on February 28, 2025 after the completion of her tenure.

• In its report published on August 10, 2024, Hindenburg Research alleged that Buch and her husband had stakes in obscure offshore funds used in the alleged money-siphoning scandal involving the Adani Group.

• They had denied the allegations saying the short-seller was attacking SEBI’s credibility and attempting a character assassination.

• The Lokpal said that the complaints alleging impropriety and conflict of interest filed in 2024 were essentially founded on the report by a known short seller trader whose focus was to expose or corner Adani Group of Companies.

• Referring to an earlier order in this regard, the Lokpal said that the Hindenburg report by itself cannot be made the sole basis to escalate action against Buch.

• Accordingly, these complaints are disposed of, said the order by a six-member bench headed by Lokpal chairperson Justice A.M. Khanwilkar.

What is Lokpal?

• India ratified the ‘United Nations Convention Against Corruption’ by the deposit of Instrument of Ratification, on May 9, 2011. 

• This Convention imposes a number of obligations, some mandatory, some recommendatory, and some optional on the Member States. 

• The Convention envisages that State Parties ensure measures in the domestic law for the criminalisation of offences relating to bribery and put in place an effective mechanism for its enforcement. 

• The Lokpal, the apex body to inquire and investigate graft complaints against public functionaries, came into being with the appointment of its chairperson and members in March 2019.

• The Lokpal is the first institution of its kind in independent India, established under the Lokpal and Lokayuktas Act, 2013, to inquire and investigate allegations of corruption against public functionaries who fall within the scope and ambit of the above Act.

• The Lokpal is committed to address concerns and aspirations of the citizens for clean governance. It shall make all efforts within its jurisdiction to serve the public interest and shall endeavor to use the powers vested in it to eradicate corruption in public life.

• The Lokpal has jurisdiction to inquire into allegations of corruption against anyone who is or has been the Prime Minister, or a minister in the Union government, or an MP, as well as government officials.

• A complaint under the Lokpal Act should be in the prescribed form and must pertain to an offence under the Prevention of Corruption Act, 1988, against a public servant. There is no restriction on who can make such a complaint.

History of Lokpal

• The institution of Lokpal was first contemplated in India in the early 1960s to root out corruption in public offices. In April 1963, Late Dr.L.M. Singhvi, while participating in the discussion on Demands for Grants of the ministry of law and justice, in the Lok Sabha, stressed the need for setting up of a Parliamentary Commission on the pattern of Ombudsman, for tackling corruption and redressal of public grievances. 

• The terms Lokpal and Lokayukta were also mentioned during the discussions. 

• The word ‘Lokpal’ etymologically means ‘protector of people’. 

• The term was coined as an Indian variant of the concept of ‘ombudsman’, which has a Scandinavian origin and refers to an official who is appointed to investigate complaints of citizens against the administration.

• In 1966, the first Administrative Reforms Commission (ARC), recommended two-tier machinery consisting of Lokpal and Lokayuktas to redress grievances of the public. 

• As per the recommendations of the ARC, the Lokpal was to deal with complaints against ministers and secretaries of the central government as well as in the states. 

• The Lokayuktas, one for the Centre and one in each state, were to attend to complaints against the rest of the administrative machinery.

• For the first time, a Bill to set up the Lokpal was introduced in the Fourth Lok Sabha as the Lokpal and Lokayuktas Bill, 1968. Since then, Bills have been introduced many times.

• The Second Administrative Reforms Commission and the National Commission to Review the Working of the Constitution, 2002 (NCRWC) have made recommendations on various aspects of the institution of the Lokpal.

• The Lokpal and Lokayuktas Act, 2013 was enacted and brought into force with effect from January 16, 2014.

• It was amended by the Lokpal and Lokayuktas (Amendment) Act, 2016.

• The objective of the Lokpal and Lokayuktas Act is to further strengthen the existing legal and institutional mechanism, thereby facilitating more effective implementation of some of the obligations under the ‘United Nations Convention Against Corruption’.

• On March 23, 2019, President Ram Nath Kovind administered the oath of office to Justice Pinaki Chandra Ghose as the first chairperson of the Lokpal.

Size of the Lokpal panel

• There is a provision for a chairperson and a maximum of eight members in the Lokpal panel. 

• Of these, four need to be judicial members.

• The chairperson and members shall be appointed by the President after obtaining the recommendations of a selection committee consisting of the Prime Minister, the Speaker of Lok Sabha, the Leader of Opposition in Lok Sabha, the Chief Justice of India or a judge of the Supreme Court nominated by him, one eminent jurist nominated by President based on the recommendation of other members of the panel.

• The chairperson and members of the Lokpal are appointed for a five-year term or till attaining the age of 70.

Conducting preliminary inquiries

• According to the Lokpal and Lokayuktas Act, 2013, there shall be a director of inquiry, not below the rank of joint secretary to the government of India, who shall be appointed by the central government for conducting preliminary inquiries referred to the Central Vigilance Commission (CVC) by the Lokpal.

• According to provisions contained under Section 20(1)(b) of the Lokpal and Lokayuktas Act, 2013, complaints in respect of public servants belonging to groups A, B, C or D are referred by the Lokpal to the CVC for a preliminary inquiry.

• The CVC forwards such references to the concerned chief vigilance officer for preliminary inquiry and report.

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