Dr Reddy's issues clarification after Congress alleges company benefited from Dhaval Buch connection, terms allegations 'baseless and malafide'

Dr Reddy's Laboratories (DRL) on Tuesday issued a clarification after the Indian National Congress alleged that the company benefitted from its association with SEBI chairperson Madhabi Puri Buch's husband Dhaval via Agora Advisory Private Limited.

The pharmaceutical company termed the allegations 'baseless and malafide,' saying that Dhaval Buch's assignment with the company "started and ended well before Ms Madhabi Buch’s term as SEBI Chairperson."

"Any suggestion that the Company was treated differently by SEBI as a result of this would be baseless and malafide. The Company has and continues to operate in compliance with all applicable laws," the company said in an exchange filing.

"It has come to our attention that there are certain allegations pertaining to our engagement with Agora Advisory Private Limited," the company added, saying,"We would like to clarify that for a limited period from October 2020 to April 2021, we engaged the services of Mr. Dhaval Buch of Agora Advisory Private Limited for leadership coaching for a total remuneration of Rs. 6,58,000 (six lakh, fifty-eight thousand rupees only)."

DRL further clarified that the company "routinely engages external coaches to enable significant role transitions of our leaders," and that Buch's renumeration was in line with the industry.

"Mr. Dhaval Buch’s work in India and globally for Unilever was well-suited to coach the identified leader in our Company, and the remuneration paid to Mr. Buch was in line with that of other coaches," the filing read.

The Congress had, earlier in the day, levelled allegations against multiple companies - including Mahindra & Mahindra, and Pidilite - of benefitting from ties to Agora Advisory, saying that "any income that Madhabi Buch’s ‘Agora Advisory Private Limited' received from them amounts to conflict of interest and violates Section 5 of SEBI’s Code on Conflict of Interest for Members of the Board."

In addition to Dr Reddy's, Mahindra & Mahindra and Pidilite also issued clarifications on the national party's allegations.

"The company engages with multiple partners and consultants who are renowned professionals in their respective fields. As part of its routine requirements, the company in FY 2019-20 had engaged Agora Advisory’s Mr. Dhaval Buch, a globally renowned supply chain and procurement professional, for his services in these areas. We further state that there have never been any enquiries or cases from SEBI vis-à-vis the company," Pidilite said in a filing with the exchange.