Madras HC directs Lokpal to ascertain complaint status against ex-IAS Ramesh Abhishek

After a writ petition was filed by 63 Moons Technologies with the Madras High Court against ex-IAS officer Ramesh Abhishek – former head of erstwhile Forward Markets Commission (FMC), for having allegedly misusing his official position as commodities market regulator in recommending the merger of the Rs. 5,600-crore scam-hit National Spot Exchange Ltd (NSEL) with the company, the Madras High Court has directed Lokpal to ascertain the present status of the complaint.

The petition was filed against Lokpal in Madras High Court on a complaint made (with Lokpal) by 63 Moons Technologies in May 2019 against Abhisek and others.

According to the Madras High Court order, “The learned counsel for the respondent is directed to ascertain the present status of the complaint made by the petitioner dated May 15, 2019. Post the writ petition after four weeks,” said the Madras High Court order.

In May 2019, a complaint was made before Lokpal by 63 Moons alleging that Abhishek and others misled the government into ordering the merger of NSEL with 63 Moons (earlier Financial Technologies). According to 63 Moons’ contention, FMC had no locus in making such a recommendation.

In July 2019 an eight-member Lokpal bench headed by former judge of the Supreme Court Pinaki Chandra Ghosh had sought the Central Vigilance Commission (CVC) report on Abhishek within a fortnight. 63 moons had filed a similar complaint with the CVC against Abhishek.

Merger set aside by Supreme Court

The Supreme Court had in early May last year set aside the merger order issued by the government as the matter was not one of public interest. The Supreme Court had observed that the expressions used by the Centre, and erstwhile commodity market regulator FMC, “in relation to public interest have relation only to the businesses of the two companies that are sought to be amalgamated”.

The Supreme Court had said that the only reason that remained for merger was contained in the FMC recommendation, which the Ccourt concluded was for “protection of private interest of a group of investors/traders, distinct from public interest”.

Post the 2013 NSEL payment crisis, the FMC, under the Chairmanship of Abhishek, had recommended that crisis-ridden NSEL be merged with its parent Financial Technologies, which is now 63 Moons Technologies.