MUMBAI: A special CBI court rejected the anticipatory bail application of Chitra Ramkrishna, former MD & CEO of NSE, terming the allegations against her in the colocation scam and in a recent Sebi order grave and serious, thereby increasing the possibility of her arrest by CBI, which filed an FIR in the colocation case back in 2018.
While rejecting Ramkrishna’s application, the judge pulled up the CBI and Sebi for their conduct toward the accused in the colocation scam. The scam pertains to unknown officials of NSE granting unfair access to certain brokers at its server facilities during 2010-14, which allowed them to benefit hugely by getting exchange data feeds splits of seconds before other brokers.
“Considering the overall facts and circumstances of the case and in view of the grave and serious allegations against the applicant / accused as above, no ground for anticipatory bail is made out at this stage. The same stands dismissed,” the court order dated March 5 said.
“…..the investigation is at most nascent stage, it has to follow a path towards a journey which has just began, at the same time the conduct of the investigating agency i.e. CBI is most lackadaisical to say the least; as no action seems to have been taken against main beneficiaries of the present co-location scam, (the names of some of whom are mentioned in the RC / FIR of 2018 itself) and others for almost four full years, who seems to be enjoying merrily at the expense of common citizenry for the reasons best known. Further even SEBI despite being capital market watchdog has been too kind and gentle qua the accused persons in the present FIR /RC (sic),” the special judge observed in his order.
Chitra’s anticipatory bail application comes in the wake of CBI arresting her former colleague and advisor Anand Subramanian on February 24. He was remanded to police custody in Delhi through March 6. “….the co-accused Anand Subramanian has already been arrested by the CBI and is on police custody remand, therefore, sustained custodial interrogation of the present applicant would also be required to dig out the truth, as also by confronting her with the said accused,” the judge said.
The CBI stepped up its probe after Sebi in an order of February 11 alleged corporate governance lapses, among others, against Chitra and Ravi Narain, former chiefs of NSE and Anand Subramanian. Sebi in its February 11 order found alleged irregularities in Subramanian’s appointment in 2013 apart from Chitra and he sharing confidential information pertaining to NSE with an outsider, described as a Himalayan Yogi by Chitra, over email. The judge observed though Chitra had deep roots in society and did not run away despite the CBI registering its FIR in 2018, she could tamper with evidence.
“…being in pole position in the NSE earlier, there are strong chances that she may influence and temper (sic) with the evidence, as she was joint MD as well as MD & CEO of the National Stock Exchange, the role of which is under investigation under the present co-location scam.