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 Technologies – Dec 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 merger – May 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