Ex-bureaucrats question CBI's action; stand by Abraham, Bhave

Coming out in support of ex-SEBI Chairman C B Bhave and ex-member K M Abraham, former bureaucrats have questioned the CBI's "unfortunate action" of registering a Preliminary Enquiry against them for alleged irregularities in granting sanction to MCX Stock Exchange.

"Both Bhave and Abraham have an unblemished record," former CAG Vinod Rai told PTI.

Former Central Vigilance Commissioner N Vittal also questioned CBI's move against Bhave and Abraham. "The CBI has become highly controversial. Its reputation has become questionable," Vittal alleged.

The PE was registered against Abraham and Bhave yesterday on issues of alleged irregularities in granting sanction to the MCX-SX by the Securities and Exchange Board of India (SEBI) in 2008 and renewing the recognition in 2009 and 2010.

The probe by CBI is to ascertain how MCX-SX was granted permission despite opposition by SEBI when Bhave was head of the regulatory authority.

The CBI's enquiry has also named Jignesh Shah-founded Financial Technologies India Ltd (FTIL) and its commodity exchange arm MCX.

"It is very unfortunate to harass these people. In case they (Bhave and Abraham) have made wrong decision and there is no malafide intention in it, then they should not be harassed," said E A S Sarma, former coal secretary.

He suggested a mechanism to be in place to safeguard honest officials.

"There has to be a rating for bureaucrats during their tenure. No case should be registered against an officer for any wrong decision if his intentions were not malafide.

"There is also a need to have a systematic reform. Instead of naming a person in an enquiry, the need is to take corrective steps in the system," said Sarma.