Funding Chidambaram’s blue-eyed boys: Ramesh Abhishek, K P Krishnan

The PM and the FM are being taken for a ride in funding the costs of a private case involving IAS bureaucrats

The PM and the FM are being taken for a ride in funding the costs of a private case involving IAS bureaucrats
The PM and the FM are being taken for a ride in funding the costs of a private case involving IAS bureaucrats

How PMO is kept in the dark by India’s ‘IAS Brotherhood’

‘Blood is thicker than water’ for the shadowy world of the corrupt Indian Administrative Services (IAS) lobby in India. Prime Minister (PM) Narendra Modi, Finance Minister Nirmala Sitharaman and other Bharatiya Janata Party (BJP) leaders are being kept in the dark by a cabal of IAS and Securities and Exchange Board of India (SEBI) officers who have approved funding to P Chidambaram’s blue-eyed boy—Ramesh Abhishek. K P Krishnan is in the queue too. The Department of Economic Affairs (DEA) along with SEBI will be bearing the costs of Ramesh Abhishek in fighting the Rs.10000 crores (cr) personal defamation case[1]. Yes. Your taxpayer money. Abhishek is retired now. So why is the Government footing his bill?

…who in the Finance Ministry and SEBI is so inclined to oblige the Three Musketeers– Abhishek, Krishnan and (boss) Chidambaram?

This, rare case of funds being given to ex-IAS officer is despite the fact that a Supreme Court (SC) judgement in effect ‘bluntly’ highlighted that Ramesh Abhishek was acting for ‘private interests’ as the chairman of Forward Market Commission (FMC) when he recommended that defunct commodity spot exchange National Spot Exchange Limited (NSEL) be merged with Financial Technologies (renamed as 63 Moons Technologies).

For the BJP government, which is fighting tooth and nail to pin down Chidambaram’s corruption, it would be like shooting in the foot if Ramesh Abhishek and K P Krishnan got ‘public funds from the finance ministry and SEBI’ to fight a case that is a ‘question mark on their personal integrity’ and has nothing to do with ‘official position,’ if one takes into consideration April 30, 2019, SC judgment issued by Rohinton Fali Nariman and Vineet Saran on the NSEL merger matter[2].

SC judgment is not the only instance that raises questions on Abhishek’s integrity but there are vigilance complaints filed against him, a Lokpal probe was ordered, there are charges of suppression of a police report in the NSEL matter against him that favoured the brokers[3]. In addition, PGurus also published detailed reports about how his assets, especially the new residential house in Gurugram, are far beyond his official government salary and how he was promoting his daughter by using his official position[4]. (It is common knowledge that for purchasing a Rs.2.67 crores house in South Delhi you would require another at least Rs.3-4 crores in Black Money as per the 60:40 ratio. There is another property in Greater Noida too[5].

The PM, Amit Shah, and Nirmala Sitharaman are being taken for a ride by some IAS officials in the Central government and a ‘Senior SEBI official’ who are involved in approving the funding request. Here is a simple question: Will the BJP led government pay Rs.10,000 crores on behalf of Ramesh Abhishek, K P Krishnan, and Chidambaram if they lose the ‘private’ defamation case? Is this a punt or a bet they are ready to take? Remember, it is a matter of public funds and the legal cost to Abhishek and Krishnan itself will run into crores as they are seeking the appointment of India’s top counsels who charge lakhs of rupees for a single appearance.

Why did SC set aside NSEL’s merger matter, which was recommended by Abhishek?

“Protection of private interest of a group of investors/ traders, distinct from public interest,” the SC order said while setting aside the merger between NSEL and 63Moons Technologies on recommendations of Ramesh Abhishek. The Judges said the only reason that remained for the merger was contained in the FMC recommendation, which the court concluded was for “protection of private interest of a group of investors/ traders, distinct from public interest.”

The judgment was a ‘slap’ on the face of Abhishek as it ridiculed his ill-thought-out recommendation, which the SC said was not in ‘public interest.’ With such a clear SC observation, how can Finance Ministry and SEBI fund Abhishek and Krishnan to fight a private defamation case involving the same matter?

It is a foolish hobgoblin of small minds that could well affect the reputation and public image of Modi and Shah and embarrass them when arguments in the ‘defamation’ case in the High Court start undressing the entire conspiracy. The charge of 63 Moons is that Abhishek, Krishnan, and Chidambaram conspired to destroy their group.

SC Observation on NSEL merger matter

As per a report by the Hindu Business Line, the SC judges said that for them “It is difficult to imagine that grave shattering of public confidence by the permanent shutting down of NSEL would be remedied only by facilitating the paying of dues to certain allegedly duped investors/ traders.”

“This ‘business reality’, therefore, speaks only of the private interest of the investors/traders who have been allegedly duped (which fact will only be established in suits filed by them in 2014), and nothing beyond (which would show some vestige of public interest),” Supreme Court judges R F Nariman and Vineet Saran said in their order.

The apex court further said “one would have expected a resuscitation or revival of the commodities exchange of NSEL, which could have been achieved by takeover of its management” and that “it is difficult to imagine that grave shattering of public confidence by the permanent shutting down of NSEL would be remedied only by facilitating the paying of dues to certain allegedly duped investors/traders, which fact will be proved or disproved in suits filed by them which are pending adjudication in the Bombay High Court.”

A Bombay High Court committee has received investor claims of only a few hundred crores so far. The Serious Fraud Investigation report said there could be bogus claims. The Income Tax Department has sent notices to several investors to check the claims. The apex court said the only reason that remained for the merger was contained in the FMC recommendation, which the court concluded was for “protection of private interest of a group of investors/traders, distinct from public interest.”

After the 2013 payment crises at NSEL, the FMC, under Abhishek, had first proposed a merger of the spot commodity exchange with its parent company FT in ‘public interest’ so that dues amounting to Rs.5,600 crores be paid to investors and traders of NSEL. The Finance Ministry exercised its powers under Section 396 of the Companies Act, which provides for amalgamation of companies in public interest, to force the merger. According to the apex court, the FMC’s 2014 recommendation to effect the NSEL-FT merger spoke only of ‘private interest.’

“We have seen that these (FMC) recommendations are in the form of a letter dated August 18, 2014, in which the ‘business reality’ is the fact that dues of Rs.5,600 crores have to be paid, and that NSEL does not have the wherewithal to do so. Thus, its parent company’s financial resources ought to be used to effect such payment.” SC thrashed the arguments and recommendations of FMC, which was acting under Abhishek.

Considering the above odds, who in the Finance Ministry and SEBI is so inclined to oblige the Three Musketeers– Abhishek, Krishnan and (boss) Chidambaram?

References:

[1] DEA approves funding for former IAS officer, Ramesh Abhishek’s legal case against 63Moons TechnologiesDec 4, 2019, The Hindu Business Line

[2] SC halts NSEL-FT merger over lack of ‘public interest’Apr 30, 2019, The Hindu Business Line

[3] ‘Dabangg’ former FMC chief Ramesh Abhishek in the dock as SC scraps NSEL – 63 Moons mergerMay 11, 2019, PGurus.com

[4] Ramesh Abhishek creates his own Make in India via Kolkata! Jul 18, 2019, PGurus.com

[5] The art of serving Politicians and enriching thyself – Part 1 – Jun 2, 2019, PGurus.com

9 COMMENTS

  1. BJP High Command cannot claim to be holy, righteous and truthful or running administration on Dharmic principles. Arun Jaitley wielded considerable inputs and had a say in the appointments during Pre2014 UPA regime. So, P. Chidambaram and other top Congi Corrupts were well-protected during his time as the head of operation of Indian administration since Modi solely focused his attention on foreign relations. IAS cabal groomed by Chidambaram and Sonia still continue to run the admin. of the IT, CBI, SEBI, RBI, ED, the HM and the FM. Modi and Nirmala S. can’t bring about rapid changes. Look at what is happening at the CBI, ED.

  2. India will die a slow and definite death with such officers in this cartelised environment headed by PC. It is probably time for the Modi government to establish a new Ministry for Anti-Corruption headed by Dr. Swamiji. The CBI, CVC, CAG should all come under this Ministry for Dr. Swamiji to act in cleansing the Indian system. Licensing Raj, Bureaucratic largess, Tax terrorism, Judiciary and many other organisations would shudder under Dr. Swamy.

    • Good & most Welcome suggestion.Otherwise it is impossible to cage criminals like Chidambaram, Manmohan, Pawars.

      After belching almost 1 trillion in irrigation scams, the criminal Pawar duo have cleverly obtained Clean Chit.

      A SEPARATE & EXCLUSIVE ANTI-CORRUPTION-MINISTRY WITH SPECIAL COURTS TO CONDUCT TRIALS ON A DAILY BASIS WITHOUT ADJOURNMENTS IS IMPERATIVE.

  3. Isn’t this what I have been writing about–this IAS Brotherhood shielding their own? And, now that PC is out on bail granted by the Supreme Court, the subject person will be beyond the reach of investigating/enforcement agencies. In other words, the IAS shall continue to rule supreme as ever and continue to pay court to the only Royals in the country since independence.

  4. Iyer Sir, as said in my earlier comments, Many small shareholders are stuck-up investing in MSEI Stock exchange. In complain to SEBI by small shareholders and employees, it is stated that forensic audit has exposed the fraud and fraudulent people behind it. Such consistent Corporate Governance violation/Fraud/PMLA acts with no action from regulator is not possible unless certain corrupt regulatory people work hand in gloves and are having complete knowledge of events, which has come out in forensic audit. Request you to put some efforts to bring out some insights on the fact findings of forensic audit as neither the corrupt board nor SEBI is breaking silence still after one year of submission of forensic report to SEBI.

  5. Very nicely article providing in-depth information about the entire corrupt gamut of blunder peoples who destroyed entire empire set by entrepreneur, Mr.Shah. Yes this funding is CSR initiative undertaken by regulator. Which will encourage officials to do blunders when in service and regulator will use public funds to protect them before and after their retirement. At one hand Modi government is doing great job eradicating corruption and on other hand how cum there is no action on top government officials who have made crores in scams and are so poor that they will require monitory support from public fund for fighting allegations.

  6. Very nicely article providing in-depth information about the entire corrupt gamut of blunder peoples who destroyed entire empire set by entrepreneur, Mr.Shah. Yes this funding is CSR initiative undertaken by regulator. Which will encourage officials to do blunders when in service and regulator will use public funds to protect them before and after their retirement. At one hand Modi government is doing great job eradicating corruption and on other hand how cum there is no action on top government officials who have made crores in scams and are so poor that they will require monitory support from public fund for fighting allegations.

    Iyer Sir, as said in my earlier comments, Many small shareholders are stuck-up investing in MSEI Stock exchange. In complain to SEBI by small shareholders and employees, it is stated that forensic audit has exposed the fraud and fraudulent people behind it. Such consistent Corporate Governance violation/Fraud/PMLA acts with no action from regulator is not possible unless certain corrupt regulatory people work hand in gloves and are having complete knowledge of events, which has come out in forensic audit. Request you to put some efforts to bring out some insights on the fact findings of forensic audit as neither the corrupt board nor SEBI is breaking silence still after one year of submission of forensic report to SEBI.

  7. Great article, you are really doing a fantastic job.

    Interesetingly, yesterday, Ms Sucheta Dalal has tweeted an open challenge to Govt to pursue cases against Sterling Biotech – her tweet states that she has the leads for money laundering.

    Hope you will do an article on the subject.

    Regards
    Mahesh

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