CBI Working With 'Crazy Logic', Ignoring Facts: Bhave - The New Indian Express

CBI Working With 'Crazy Logic', Ignoring Facts: Bhave

Published: 19th March 2014 01:50 PM

Last Updated: 19th March 2014 01:55 PM

Hitting back at CBI for launching an enquiry against him on the basis of an already disposed of I-T probe, former Sebi chief C B Bhave says the agency was working with a "crazy logic" and has ignored the fact that the tax department itself found no merit in the case years ago.

Hinting at certain revelations from his side in days to come, Bhave also accused CBI of indulging in "pick and choose" while registering an Preliminary Enquiry against him and Sebi's another former senior official in Shah-related matters.

A former Maharashtra cadre IAS officer of 1975 batch, Bhave further said that CBI must probe him if it has any evidence. But, CBI would have to "publicly apologise" to him for tarnishing his reputation if they find no substance, he told PTI in an interview.

When asked whether actions taken by Sebi against Sahara and other corporate entities during his tenure could be linked to the present case, Bhave said, "I have no idea and there is no way of knowing the same unless they (CBI) share something with us.

"Whatever I know is from newspaper reports. They have not shared anything with us and have not contacted us yet."

The PE has been registered on the grounds that Sebi granted a licence to MCX-SX in 2008 and further renewed it during subsequent years despite an income tax department probe against the applicant entities.

Asked for his comments on CBI Director Ranjit Sinha's reported remarks that the agency has only registered a PE, Bhave retorted, "They are saying there are no raids or arrests yet. Should we wait to get raided and arrested?"

Bhave, who served as Sebi Chairman for three years till mid-February, 2011, said that "CBI chose to ignore the fact that the I-T department found no merit in its prob against Shah. Yet, CBI chose to file a criminal PE against me".

On CBI's assertion that Shah was given undue benefits by grant of licence, Bhave said, "it's a completely crazy logic that CBI has", because the licence did not lead into any profits and it was rather granted to create competition.

Bhave has been credited with several path-breaking orders and decisions taken by the capital markets regulator and the CBI move against him has already evoked sharp reactions from many former bureaucrats including ex-CAG Vinod Rai, as also by Union Minister Jairam Ramesh.

CBI registered a PE against Bhave, Sebi's former whole-time member K M Abraham, as also against Shah-led FTIL and MCX, last week in a case related to grant of licence to MCX Stock Exchange in 2008.

MCX-SX, which was set up by FTIL and MCX, was initially given licence to operate in a limited segment of currency derivatives in 2008, but Sebi refused permission to allow it to act as a full-fledged bourse for years as it was not found to be in compliance with existing regulations for the same.

Bhave further said that CBI can "pick and choose" its cases, as it has done in various matters related to Jignesh Shah.

"Just last year, Sebi permitted Shah to continue to run the exchanges under Sebi regulations when there was a show-cause notice issued to him for declaring him not fit and proper by the FMC after it found that Rs 5,000 crore loss was incurred on investors.

"Despite the knowledge of this serious investigation, Sebi under (current chairman) U K Sinha allowed Shah's exchanges to run. This is all out in the public domain. Does it mean that the CBI should open a preliminary inquiry against Sinha?" he asked.

On whether the CBI move would have a bearing on morale of the regulators, their autonomy and independence, Bhave said, "Such act will definitely have adverse impact on the people."

"It is very easy to say something against someone and make humiliating allegations and malign their reputations. And if they have not found anything criminal act from them, will they apologise? If CBI has not found anything against me, then I want them to publicly apologise to me."

"In this particular case, three Sebi chairmen have arrived at the same conclusion and had similar views. Why don't they file a PE against the current chairman for continuing the licensee of MCX-SX after the NSEL scam broke out?"

"CBI has not bothered to look at the facts. They have not bothered to see that NSEL has caused loss to investors. They also have not bothered to look at the fact that the IT department probe against Shah has not found anything and that they had closed the case against him long ago."

"But they found it worthwhile to file a PE against me based on these closed probe," he said.

Sebi was incidentally informed about the I-T probe when Bhave's predecessor M Damodaran served as its Chairman.

Clarifying that he was not demanding probe against former or current chairmen of Sebi as well, Bhave said he was only "explaining the crazy logic behind the case" against him.

Questioning CBI move further, Bhave said, "It is easy to say anything against anyone and not prove it. My only submission is that if they have evidence against me, they should proceed to probe me and share those evidence with me."

"If they find no substance, then they should apologize for tarnishing my reputation. His (CBI Director's) statement that no raid or search has been conducted means what? We should wait for to be raided and searched? And till that happens keep us in the dark? The CBI director must look into all the evidence and take such serous decisions," he added.

When asked whether he would like to reveal something more on the case, he said, "Let me wait for some more days".

On any possible legal action he may be contemplating, Bhave said, "I cannot do that as I have nothing in paper with me."

comments powered by Disqus

Disclaimer: We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the NIE editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.


follow us Mobile Site iPad News Hunt Android RSS Tumblr Linekin Pinterest Youtube Google Plus Twitter Facebook