Ex-NSE doctor Chitra Ramkrishna arrested in Delhi in collocation case
Earlier on Saturday, a Delhi court rejected Ramkrishna’s pre-arrest bail plea in the NSE collocation case, firing the CBI for inaction and being ‘nonchalant’ in the investigation against the accused over the past four years.
Special Judge Sanjeev Aggarwal also observed that market regulator SEBI was “too nice” to the defendant in rejecting Ramkrishna’s early bail application, noting that she faces many challenges. serious allegations and that his sustained questioning in custody would be necessary to uncover the truth.
He said the investigation in the state was at its most nascent stage.
“He has to follow a path to a journey that has just begun, at the same time the conduct of the investigative agency, ie CBI, is the most nonchalant to say the least;
“As no action appears to have been taken against the primary beneficiaries of the current roommate scam, (some of whom are mentioned in the FIR itself) and others for nearly four full years, who appear to be happily profiting from the at the expense of ordinary citizens for the most well-known reasons,” the judge said.
He said that even SEBI, despite being the watchdog of the capital market, has been too nice and nice to the defendants in the current FIR/RC.
“There is no doubt that SEBI has the power to bring serious criminal charges under Section 24 of the SEBI Act, however, the scope of proceedings before SEBI as a market regulator is totally different from the scope and nature of the current criminal proceedings initiated in the current RC/FIR.
“While there are overlaps, this is another matter as SEBI has looked the other way in terms of initiating criminal charges,” the judge noted.
The court said it could not be said prima facie at this stage that Ramkrishna’s role was not under the scanner. It further appeared prima facie that the defendant introduced a person who did not exist to mislead the investigating agency, which may also prove prima facie her connivance in the case.
The very appointment of Anand Subramanian without following due process at a very exorbitant salary, on the face of it, shows that all may have acted in tandem with each other in achieving or furthering the goals of the scam of roommate, he additionally mentioned.
“Furthermore, on the face of it, this type of roommate scam would not have been possible without the knowledge and active connivance of all functional heads of the NSE at the relevant time, this period can be considered a dark in the history of the NSE,” the court said.
The court dismissed the claim, saying the economic crimes had deep-rooted conspiracies resulting in a huge loss of public funds.
“Since in the present case a huge loss of public money may be involved, it should be taken seriously and regarded as a serious offense or offenses affecting the economy of the country as a whole and thus causing a serious threat to the financial health of the country.” It said.
“Since economic offenses are a class apart, they must therefore be approached with a different approach to bail, as economic offenses have deep-rooted conspiracies involving enormous loss of public funds,” the court said.
He said the chances of the defendant fleeing justice were low, however, being in pole position in the NSE earlier, there was a good chance she could influence and tamper with the evidence, as she was a co-doctor. as well as DM and CEO. of the National Stock Exchange, whose role is being investigated in connection with the roommate scam.
“There are many facets of the investigations that need to be dug up by the investigative agency after removing the dust of time that covers them,” Judge said.
He said that the scale of the present case could be enormous, because due to this financial shenanigans, huge losses could have been caused to member stock brokers, institutional investors, foreign institutional investors and honest investors. , whose confidence in this leading financial institution may have been severely shaken and dented.
“In view of all the facts and circumstances of the case and in view of the grave and serious allegations against the petitioner/defendant as above, no grounds for early bail are established at this stage. The same is dismissed,” the judge said.
The judge further noted that co-defendant Anand Subramanian had already been arrested by the CBI and was in custody, and said: “therefore, sustained questioning of the current applicant would also be required to uncover the truth, as well only by confronting it with said accused.”
The CBI had recently questioned Ramkrishna about this. The Income Tax (IT) department has already raided various premises related to Chitra Ramkrishna in Mumbai and Chennai.
Ramkrishna has also been on the radar of market regulator Securities and Exchange Board of India (SEBI).
Recently, the CBI court had sent Anand Subramanian, a former chief operating officer of the group and adviser to the former managing director of the National Stock Exchange Chitra Ramkrishna, into CBI custody.
The arrest was made in the case linked to the roommate scam, the FIR of which was registered in May 2018, amid new revelations of irregularities at the country’s largest stock exchange.
The CBI is investigating the alleged improper dissemination of information from stock exchanges’ computer servers to stockbrokers.
Ramakrishna and another former CEO Ravi Narayan along with two other officials were penalized by SEBI for shortcomings in top-level recruitment.
Ravi Narain served as Managing Director and CEO of National Stock Exchange from April 1994 to March 2013, while Chitra Ramkrishna served as Managing Director and CEO of NSE from April 2013 to December 2016.
The market regulator observed that the NSE and its key executives breached securities contract standards relating to the appointment of Anand Subramaniam as group chief operating officer and adviser to the chief executive.
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