Indian automaker Mahindra & Mahindra said on Tuesday it had paid the husband of a senior regulatory official for work at a time when she was holding the second highest office at the country's market regulator, but denied any conflict of interest, following allegations from an opposition political party.

India's main opposition party Congress on Tuesday alleged that Dhaval Buch, husband of Madhabi Puri Buch who now heads the Securities and Exchange Board of India (SEBI), earned 47.8 million rupees ($569,251) from the company at a time when the regulator was probing it for certain market infractions.

Congress did not provide any proof for its allegations.

In a disclosure to stock exchanges on Tuesday, Mahindra said: "Compensation has been specifically and only for Mr. Buch’s supply chain expertise and management acumen, based on his global experience.

"We categorically state that we have not, at any point, requested SEBI (Securities and Exchange Board of India) for any preferential treatment," Mahindra said.

The company added that they consider allegations made by a political party 'false and misleading in nature'.

Email queries sent to SEBI's spokesperson and Buch were not immediately answered.

The finance ministry, which oversees the markets regulator, did not respond to queries on whether it believes the allegations warrant an investigation.

Buch has been at the centre of a storm following accusations by Hindenburg Research that she and her husband previously held investments in offshore funds also used by the Adani Group, which is being investigated by the regulator. She has denied the accusations.

The Congress party, which held protests across the country last month, has sought Buch's resignation.

Prime Minister Narendra Modi's government has refused to give in to the opposition's demands.

($1 = 83.9700 Indian rupees)

(Reporting by Jayshree P Upadhyay; Editing by Kim Coghill)