NSE – Delhi High Court Dismisses Chitra Ramkrishna’s Corruption Law Plea
NSE – The Delhi High Court on Thursday dismissed a petition filed by former National Stock Exchange managing director and chief executive officer Chitra Ramkrishna, who had challenged provisions of the Prevention of Corruption Act that define “public duty” and “public servant”. The court held that the NSE carries out functions of substantial public importance and that its senior leadership cannot be viewed separately from those responsibilities.
Court finds NSE performs a public function
A Division Bench comprising Justices Navin Chawla and Ravinder Dudeja said the exchange performs duties that affect the public at large. The court noted that the role of the NSE in India’s financial markets gives its operations a public character, particularly because investors, listed companies and market participants rely on its systems and decisions.
The Bench said Ramkrishna, who served as the NSE’s managing director and CEO during the period under scrutiny, could not be completely detached from the functions performed by the institution. The judges concluded that the nature of the exchange’s work brought the matter within the scope of the Prevention of Corruption Act.
Challenge to prosecution sanction also rejected
The High Court also declined to interfere with the sanction issued for Ramkrishna’s prosecution. During the pronouncement of the order, the Bench said it had found no merit in the submissions made against the sanction order or in the wider petition.
“We have rejected your submission on the sanction order. We do not find any merit in the present petition,” the court said, adding that the petition and related applications were dismissed.
The ruling means that the prosecution process against the former NSE chief can continue in accordance with law.
Ramkrishna questioned scope of anti-corruption law
Ramkrishna had argued that the definitions of “public duty” and “public servant” in the Prevention of Corruption Act were unconstitutional and too broad. Her plea maintained that officials of private institutions, including the NSE, should not automatically be treated as public servants under the anti-corruption framework.
She had also questioned the legality of the approval granted to prosecute her. According to her challenge, the statutory provisions were being applied in a manner that extended criminal liability beyond what the law intended.
The High Court did not accept those arguments. Its order upholds the application of the anti-corruption law to the circumstances alleged in the case.
Case linked to NSE co-location investigation
The proceedings stem from investigations into alleged irregularities at the National Stock Exchange, including matters related to its co-location facilities. The Central Bureau of Investigation has alleged that Ramkrishna misused her official position while leading the country’s largest stock exchange.
The Enforcement Directorate is separately examining the matter under the Prevention of Money Laundering Act. Its investigation is based on the CBI case and concerns the financial aspects linked to the allegations.
Ramkrishna is currently on bail in both the CBI and Enforcement Directorate cases. The court’s decision does not determine her guilt or innocence, which will be considered during the course of the criminal proceedings.
Earlier hearing had concluded with judgment reserved
The Division Bench had reserved its decision after hearing arguments on Ramkrishna’s challenge to the relevant provisions of the Prevention of Corruption Act and the prosecution sanction. Thursday’s order brings that legal challenge to an end at the High Court level.
By dismissing the petition, the court has affirmed that the NSE’s role in the financial system involves public duties and that its top executive may be examined under the Prevention of Corruption Act in relation to the allegations under investigation.