The Bombay High Court has ordered former finance minister (FM) P Chidambaram and two officers of the Indian Administrative Service (IAS) to appear before court. It asked for a written statement to be filed in 12 weeks in a Rs 10,000-crore defamation suit slapped by 63 Moons Technologies (formerly Financial Technologies (India), or FTIL) in the Rs 5,600-crore National Spot Exchange (NSEL) scam.
The order was passed last week. The two IAS officers are Ramesh Abhishek, former chairman of the erstwhile commodities market regulator Forward Markets Commission and K P Krishnan, former officer in the finance ministry when Chidambaram was the FM. Krishnan is currently working as secretary in the Ministry of Skill Development and Entrepreneurship.
While Chidambaram is alleged to have framed policies supporting another commodity exchange, the two IAS officers were blamed for having helped create undue regulations beyond their jurisdiction to slay competition and finish the business of FTIL
Group, which also promoted NSEL.
Market regulator Securities and Exchange Board of India (Sebi) on Tuesday also imposed a fine of Rs 12 lakh on Naisadh P Desai, former senior vice-president (V-P) of FTIL, for violating insider trading norms. According to Sebi’s order, Desai was senior V-P and company secretary of FTIL
from March 2008 to September 2013.