Ex-bureaucrats criticise CBI’s action on Bhave, Abraham

Updated - November 29, 2021 01:11 pm IST

Published - March 14, 2014 05:03 pm IST - New Delhi

A file photo shows the investors agitating in front of FT office in Mumbai as the company set to lose control of its MCX -SX exchange. Photo: Paul Naronha.

A file photo shows the investors agitating in front of FT office in Mumbai as the company set to lose control of its MCX -SX exchange. Photo: Paul Naronha.

Coming out in support of ex-SEBI Chairman C B Bhave and ex-member K M Abraham, former bureaucrats have questioned the CBI’s “unfortunate action” of registering a Preliminary Enquiry against them for alleged irregularities in granting sanction to MCX Stock Exchange.

“Both Mr. Bhave and Mr. Abraham have an unblemished record,” former CAG Vinod Rai told PTI.

Former Central Vigilance Commissioner N Vittal also questioned CBI’s move against Mr. Bhave and Mr. Abraham. “The CBI has become highly controversial. Its reputation has become questionable,” Mr. Vittal alleged.

The PE was registered against Mr. Abraham and Mr. Bhave on Thursday on issues of alleged irregularities in granting sanction to the MCX-SX by the Securities and Exchange Board of India (SEBI) in 2008 and renewing the recognition in 2009 and 2010.

The probe by CBI is to ascertain how MCX-SX was granted permission despite opposition by SEBI when Mr. Bhave was head of the regulatory authority.

The CBI’s enquiry has also named Jignesh Shah-founded Financial Technologies India Ltd (FTIL) and its commodity exchange arm MCX.

“It is very unfortunate to harass these people. In case they (Bhave and Abraham) have made wrong decision and there is no malafide intention in it, then they should not be harassed,” said E A S Sarma, former coal secretary.

He suggested a mechanism to be in place to safeguard honest officials.

“There has to be a rating for bureaucrats during their tenure. No case should be registered against an officer for any wrong decision if his intentions were not malafide.

“There is also a need to have a systematic reform. Instead of naming a person in an enquiry, the need is to take corrective steps in the system,” said Mr. Sarma.

Former IAS officer G Sundaram also supported Mr. Bhave and Mr. Abraham. “I don’t know them. Both of them are supposed to be good officers,” he said.

Mr. Sundaram also questioned suspension of some officials during their last days of retirement.

“There have been many instances where bureaucrats have been suspended on the last date of retirement. It is unfair,” he added.

Both Mr. Bhave and Mr. Abraham are former IAS officers and served at various important positions.

Mr. Bhave was SEBI Chairman between February 19, 2008 and February 17, 2011. Whereas, Mr. Abraham had served as whole-time member of SEBI between July 21, 2008 and July 20, 2011.

Mr. Abraham had in 2011 written to Prime Minister Manmohan Singh and alleged that certain corporates and Finance Ministry officials were exploiting the vulnerability of the market regulator, which was investigating crucial cases involving prominent business houses.

His charges were, however, rejected by the Finance Ministry.

Former bureaucrats had also criticised CBI’s action against former Coal Secretary P C Parakh. CBI had in October last year registered a case against Mr. Parakh and industrialist Kumar Mangalam Birla on charges of criminal conspiracy and corruption in connection with alleged irregularities in the allocation of two coal blocks in Odisha in 2005.

Both Mr. Parakh and Birla had rejected allegations levelled against them by the CBI.

Also, Supreme Court while hearing multi-crore coalgate case recently had termed as “mute spectator” to Central Vigilance Commission (CVC).

“We find that except for getting reports and progress reports of investigation there is nothing in your (CVC) hand,” a bench headed by Justice R M Lodha had said, adding that “after investigation is done the report is submitted but the question is that the role of the CVC is just of a mute spectator”.

The CVC exercises superintendence over CBI to oversee investigations related to anti-corruption cases.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.