Former Mumbai top cop Sanjay Pandey summoned by ED in NSE co-location case
India Today
Former Mumbai Police Commissioner Sanjay Pandey has been asked to appear before the ED in the NSE co-location scam.
Former Mumbai Police Commissioner Sanjay Pandey has been summoned by the Enforcement Directorate (ED) in a money laundering case. The top cop, who retired on June 30, has been asked to appear before the probe agency on July 5.
Sanjay Pandey had floated an IT audit firm in 2001. Later, he appointed his son and mother as the directors of the firm.
Between 2010 and 2015, the firm named Isec Services Pvt Ltd was awarded an IT audit contract of National Stock Exchange (NSE) servers and systems but in the said period it did not flag any breach.
The breach had allowed one of the trading companies to get unfair access to the system, resulting in windfall profits.
The NSE co-location case pertains to a co-location facility offered by the NSE where brokers could place their servers within the stock exchange premises, giving them faster access to the markets.
It was alleged that brokers, in connivance with insiders, abused the stock-trading algorithm and the co-location facility to make windfall profits. The ED first registered a case in this matter in 2018, under the Prevention of Money Laundering Act.
A CBI probe into the co-location scam has led to the arrest of former NSE managing director Chitra Ramkrishna and its former group operating officer Anand Subramanian.
