NSE co-location scam: CBI conducts searches across India on MHA orders

Federal watchdog Central Bureau of Investigation (CBI) is conducting searches at locations across India in related to the National Stock Exchange (NSE) scam case. These searches are being reportedly conducted on the Home Ministry’s orders, according to news agency ANI.

Prior to this, the federal watchdog registered a fresh case against former NSE chief Chitra Ramkrishna, ex-Mumbai Police commissioner Sanjay Pandey and Ravi Narain for allegedly tapping phones of NSE officials and other irregularities.

CBI sources told news agency ANI, “CBI searches underway across India on the orders of MHA. The agency registered a fresh case against ex-NSE chief Chitra Ramkrishna, Ravi Narain and former Mumbai commissioner Sanjay Pandey for allegedly tapping phones of NSE officials and other irregularities.”

Moreover, former Mumbai Police commissioner Sanjay Pandey appeared before the Enforcement Directorate (ED) for questioning in a money laundering case linked to the NSE co-location scam. His statement was recorded under the criminal sections of the Prevention of Money Laundering Act (PMLA), as per PTI.

Pandey’s questioning was related to the functioning and activities of a company called iSec Securities, a firm amongst a few others that conducted a security audit of NSE around the time the co-location regularities are alleged to have taken place. This company was incorporated by Pandey in March 2001 and he quit as the director in May 2006. After this, his mother and son took over charge of the company.

Meanwhile, Ramkrishna is already lodged in the Tihar jail. She was the MD and CEO of the NSE from April 2013 to December 2016. CBI is probing the alleged improper dissemination of information from the computer servers of exchanges to stock brokers.

(With agency inputs)