Jul 04, 2022 05:00 am
The Enforcement Directorate (ED) on Saturday issued summon to former Mumbai Police commissioner Sanjay Pandey, who had retired on 30 Jun 2022 asking him to appear before it on July 5 in connection to the National Stock Exchange (NSE) co-location scam.
Sources said the summon was issued on Saturday in connection with the scam being probed by the CBI while the ED is probing the money laundering aspect of the case. The summons issued to Pandey’s Mumbai residence asked him to appear before the ED on July 5 around 11.30 am.
He is likely to appear before the ED office in Delhi. Sources said that an employee from iSec Securities Private Limited, the company incorporated by Pandey, has already been questioned by the ED and the CBI. A source said Pandey has been summoned since the company incorporated by him had conducted the security audit at the NSE during the period when the co-location scam took place.
Following the FIR registered by the CBI in connection with the NSE co-location scam case in 2018, the ED, too, had registered an ECIR and conducted raids. In April, it had searched multiple locations in Delhi and Gurugram. In May, it had questioned former CEO of NSE, Chitra Ramkrishna, and recorded her statement at Delhi’s Tihar jail, where she is currently lodged. When iSec was incorporated in March 2001, Pandey was not in police service.
He quit the firm’s directorship in May 2006, while his mother Santosh and son Armaan became the company’s directors.
Based out of Oshiwara in Andheri, iSec was one of the IT companies tasked with conducting security audits at NSE from 2010 to 2015 when the co-location scam is believed to have taken place.
The CBI was probing the company, as it believed that the security audit firm should have been able to detect the breaches in the NSE system when the scam took place.
Sources close to the company, however, claimed that they were just responsible for checking the IT capacity of the brokers using the co-location facility and did not have any access to the NSE servers.