Delhi court sends ex-NSE MD Ravi Narain to two-day ED custody | The Financial Express

Delhi court sends ex-NSE MD Ravi Narain to two-day ED custody

Special Judge Sunena Sharma allowed ED’s plea seeking Narain’s custody till September 9, after the accused was produced before the court by the probe agency

Delhi court sends ex-NSE MD Ravi Narain to two-day ED custody
Ravi Narain was the MD and CEO of NSE from April 1994 to March 31, 2013

A Delhi court on Wednesday sent former MD and CEO of National Stock Exchange, Ravi Narain, to two days’ custodial interrogation by Enforcement Directorate in a money laundering case related to alleged illegal phone tapping and snooping on stock exchange employees.

Special Judge Sunena Sharma allowed ED’s plea seeking Narain’s custody till September 9, after the accused was produced before the court by the probe agency.

ED’s Special Public Prosecutor N K Matta told the court that the accused was required to be confronted with other accused persons and evidence to unearth the larger conspiracy in the matter.

Also Read: Sebi issues Rs 3.12 crore demand notice to Chitra Ramkrishna

He said that Narain’s interrogation was required to investigate the money trail in the case.

As per ED case, the top officials of NSE, including accused Ravi Narain, caused the monetary loss to the stock exchange by allowing iSec to gain money out of illegal activity done under the guise of a legitimate contract of ‘Study of Cyber Vulnerabilities’, the court noted.

“After going through the material collected by ED in the instant case so far, it appears that it is only with the active assistance and help of former NSE chief Chitra Ramkrishna, Ravi Narain and other top officials of NSE, iSec was able to generate money to the tune of Rs 4.54 crore and give it a colour of untainted money by showing it to have been earned through a legitimate source,” the judge said.

Also Read: NSE co-location scam: Ex-MD Chitra Ramkrishna sent to 14-day judicial custody

The judge added that “in the light of aforementioned facts and circumstances of the case, ED has sufficient grounds to proceed with the investigation into the allegations of money laundering and to seek custodial interrogation of the accused to unearth the deeper conspiracy, the involvement of other accused persons and their entire modus operandi”.

The ED on Tuesday arrested Narain in the case.

Narain was the MD and CEO of NSE from April 1994 to March 31, 2013. Thereafter, he was appointed as the vice-chairman in a non-executive category on the company’s board from April 1, 2013, to June 1, 2017.

The ED had registered an Enforcement Case Information Report (ECIR) in July against former Mumbai police commissioner Sanjay Pandey and former heads of the NSE for allegedly tapping the phones of employees between 2009 and 2017.

This is the second case being probed by the ED about alleged violation of money laundering norms in the co-location scam.

Pandey and Ramkrishna were arrested in July this year in the case.

Ramkrishna was earlier arrested by the CBI in March this year in the co-location case.

Pandey’s company, iSec Services, formed in 2001, was among the many IT firms that conducted security audits at NSE between 2010 and 2015, when the co-location scam allegedly took place. The agencies have found that interception was done without employees’ consent.

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