Delhi HC: NSE chief falls within ambit of PC Act; Ramkrishna plea dismissed

The Delhi High Court held that the National Stock Exchange performs functions involving significant public interest and upheld the sanction granted for Chitra Ramkrishna's prosecution

The Delhi High Court on Thursday dismissed a petition by former National Stock Exchange (NSE) managing director and chief executive officer Chitra Ramkrishna challenging provisions of the Prevention of Corruption Act (PoCA) that define “public duty” and “public servant”, holding that the stock exchange performs functions in which the public has a significant interest.

 

A Division Bench of Justices Navin Chawla and Ravinder Dudeja held that Ramkrishna, by virtue of heading the NSE, could not be separated from the public duties discharged by the exchange.

 

The court also upheld the validity of the sanction granted for her prosecution under PoCA. “We have rejected your submission on the sanction order. We do not find any merit in the present petition. The same, along with the applications, is accordingly dismissed,” the Bench said while rejecting the plea.

   

Ramkrishna had challenged the constitutional validity of Sections 2(b) and 2(c)(viii) of PoCA. Section 2(b) defines “public duty” as a duty in which the State, the public, or the community at large has an interest, while Section 2(c)(viii) expands the definition of a public servant to include anyone holding an office that authorises or requires the discharge of such public duty.

 

The petition arose in the backdrop of the Central Bureau of Investigation’s (CBI’s) prosecution of Ramkrishna in connection with the alleged NSE colocation scam.

 

Investigators have accused her of irregularly revising the designation and remuneration of former NSE executive Anand Subramanian, allegedly conferring disproportionate benefits on him.

 

The prosecution traces its case to a February 11 order of the Securities and Exchange Board of India, which found prima facie irregularities in the fixation and repeated enhancement of Subramanian’s compensation during Ramkrishna’s tenure.

 

The CBI has alleged that Ramkrishna acted “in cahoots” with an individual she described as a “Siddha Purusha” and that Subramanian, while entrusted with responsibilities affecting the interests of investors, entered into a criminal conspiracy with other accused persons to confer undue advantages on certain trading members and brokers, resulting in a serious economic offence.

 

The agency has also alleged that emails purportedly exchanged with a self-described “Himalayan Yogi” were, in reality, communications with Subramanian.