The Delhi High Court on Thursday dismissed former NSE chief Chitra Ramkrishna's petition challenging the definitions of 'public duty' and 'public servant' under the Prevention of Corruption Act. According to reports from The Hindu BusinessLine, The Economic Times, LiveLaw, CNBC TV18, and Business Standard, the division bench led by Justice Naveen Chawla held that the NSE performs a public function and ruled that Ramkrishna, as its managing director, also discharged public duties that could not be separated from the exchange's functions. As per The Hindu BusinessLine, the Division Bench of Justices Navin Chawla and Ravinder Dudeja held that the NSE discharges a public duty and that Ramkrishna, as its MD and CEO during the relevant period, cannot be wholly separated from the functions performed by the exchange in which the public at large has a significant interest. The court also rejected Ramakrishna's challenge to the sanction granted for her prosecution under the Prevention of Corruption Act, effectively clearing the way for criminal proceedings against her to continue. According to Business Standard, the court specifically rejected Ramakrishna's submissions on the sanction order, finding no merit in the petition, with the Bench stating 'We have rejected your submission on the sanction order. We do not find any merit in the present petition. The same, along with applications, is accordingly dismissed'. The High Court had earlier reserved its judgment after considering Ramkrishna's challenge to the statutory provisions and the validity of the prosecution sanction.
As reported by The Hindu BusinessLine, Ramkrishna had challenged the definitions of 'public duty' and 'public servant' arguing that they were overly broad and had been expanded to prosecute individuals who were not public servants but were privately employed, like her. She contended that although the NSE is a company registered under the Companies Act, she had been categorised as a public servant. According to CNBC TV18, Ramkrishna approached the High Court contending that the definitions of public duty and public servant under the Prevention of Corruption Act were unconstitutional and overly broad, arguing that they improperly brought officials of private bodies such as the NSE within the ambit of the anti-corruption law. The former CEO also questioned the validity of the prosecution sanction granted against her, but the High Court declined to accept these contentions. As per LiveLaw, the court specifically rejected Ramakrishna's submissions on the sanction order, finding no merit in the petition. Ramkrishna had specifically challenged Sections 2(b) and 2(c)(viii) of the PC Act, with Section 2(b) defining public duty as the "duty in the discharge of which the State, the public or the community at large has an interest" and Section 2(c)(viii) stating that a public servant includes any person "who holds an office by virtue of which he is authorised or required to perform any public duty."
The case arises out of the CBI's investigation into alleged irregularities at the National Stock Exchange, including the co-location matter. According to CNBC TV18, Ramkrishna is an accused in the alleged NSE co-location scam, in which the CBI has alleged a criminal conspiracy that provided undue advantage to select trading members and brokers. The Enforcement Directorate is also investigating the matter under the Prevention of Money Laundering Act based on the CBI case. Ramkrishna is presently on bail in both the CBI and Enforcement Directorate cases. The FIR was registered by CBI under sections 120B and 204 of Indian Penal Code, Sections 7, 12, 13(2) read with 13(1)(d) of the Prevention of Corruption Act and Section 66 of the Information Technology Act. CBI is probing an alleged improper dissemination of information from the computer servers of the market exchange to the stockbrokers. In August 2009, the National Stock Exchange introduced its co-location facility, allowing brokers to place their servers within the exchange's data centre for a fee. By locating their servers closer to the NSE's systems, these brokers received market data fractions of a second faster than others, enabling quicker execution of trades and giving them a competitive advantage. Ramkrishna was granted default bail by the High Court in September 2022, and CBI's challenge to the same was rejected by the Supreme Court in February 2023.
According to CNBC TV18, the petition arose in the backdrop of the CBI's prosecution of Ramkrishna in connection with the alleged NSE co-location scam. The latest developments reveal that 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 by the Securities and Exchange Board of India (SEBI), which found prima facie irregularities in the fixation and repeated enhancement of Subramanian's compensation during Ramkrishna's tenure. As per CNBC TV18, the case forms part of the CBI's investigation into the alleged NSE co-location scam, with Ramkrishna having been accused of irregularly revising the designation and remuneration of former NSE executive Anand Subramanian, allegedly granting him disproportionate benefits. The allegations stem from a SEBI order issued on February 11, which concluded that Ramkrishna was involved in irregular decisions relating to Subramanian's appointment and compensation. According to CNBC TV18, investigators have also alleged that she took guidance from a so-called "Siddha Purusha" through email communications, whom the CBI claims was in fact Subramanian. The agency has also alleged that emails purportedly exchanged with a self-described Himalayan Yogi were, in reality, communications with Subramanian.
