CFMA filed a writ petition no. 35893 of 2019 challenging the constitutional validity of s.17A of the Prevention of Corruption Act 1998. The primary ground of challenge in this petition is that s.17A is arbitrary and discriminatory since the very initiation of inquiry against a public servant is throttled by virtue of the opaque amendment. The amendment also violates the judgment of the Hon. Supreme Court in the Lalitha Kumari case as well as the Subramaniam Swamy case. This writ petition was entertained by the Hon. Madras High Court and they were pleased to introduce notice to Union of India. The order of the Hon. Court can be found at: https://www.mhc.tn.gov.in/judis/madras-do/index.php/casestatus/viewpdf/WP_35893_2019_XXX_0_0_06012020_85_176.pdf
CFMA has also filed a writ petition against Mr. Ajay Shah bearing WP no. 1003 of 2020 in relation to the colocation scam at National Stock Exchange. The said writ petition has been filed for a Writ of Quo Warranto questioning the authority by which Mr. Ajay Shah continues to be employed with National Institute of Public Finance and Policy (NIPFP) which is funded through public money. Mr. Ajay Shah has been indicted by SEBI and is also one of the accused in the CBI FIR in the colocation scam. Such being the case, he’s not a fit and proper person to be employed in a public institution which is funded by the Government of India. The said writ petition was allowed by Hon. Madras High Court and notice was issued in this. Thereafter it came in the public domain that Mr. Ajay Shah was no longer associated with the NIPFP.
CFMA filed a writ petition no. 28493 of 2019 against SEBI & other authorities in relation to NSE colocation scam. NSE had introduced colocation facility without obtaining regulatory approval, with a communication protocol that facilitates providing order related information to a few brokers well ahead of the remaining market throughout the day. Also, NSE officials colluded with a few brokers to enable them logon to standby server with less traffic and thus gave preferential access to them. These have been corroborated by SEBI Technical Advisory Committee Report and Deloitte Report, and are violations of the provisions of SEBI (Prevention of Fraudulent and Unfair Trade Practices) Regulations 2003. However, SEBI has not taken effective action against NSE commensurate to the magnitude of fraud and the wide power available in the regulations. Hence a petition has been filed for Writ of Mandamus to constitute a Special Investigation Team (SIT) headed by a retired Judge and consisting of members from the respondents to investigate the NSE Colocation scandal and submit a detailed report before this Hon’ble Court including but not limited to examination of the hard disk of NSE. The Hon. Madras High Court has entertained the petition and ordered notice to the respondents.
CFMA filed a writ petition no. 19413 of 2020 against SEBI in relation to NSE Initial Public Offer (IPO) matter. SEBI observed that NSE had violated Securities Contracts Regulations (Stock Exchanges & Clearing Corporations) Regulations 2018 in dark fibre matter and barred NSE from accessing securities market for six months vide order dated 30.04.2019. Subsequently, as there were reports on NSE planning an IPO, this petition was filed for a Writ of Mandamus to forebear the IPO of NSE. As both NSE and SEBI submitted that no decision has been taken yet, the Court ordered that we can challenge any future decision in this regard.
CFMA filed a writ petition no. 19413 of 2020 against SEBI in relation to NSE Initial Public Offer (IPO) matter. SEBI observed that NSE had violated Securities Contracts Regulations (Stock Exchanges & Clearing Corporations) Regulations 2018 in dark fibre matter and barred NSE from accessing securities market for six months vide order dated 30.04.2019. Subsequently, as there were reports on NSE planning an IPO, this petition was filed for a Writ of Mandamus to forebear the IPO of NSE. As both NSE and SEBI submitted that no decision has been taken yet, the Court ordered that we can challenge any future decision in this regard.
CFMA filed a writ petition no. 1053 of 2020 against Central Board of Direct Taxes (CBDT) in relation to fictitious clients who traded on the platform of National Spot Exchange Limited (NSEL) but have not filed any claims before authorities and thereby cheated on income tax payment. Although Serious Frauds Investigation Office (SFIO) forwarded a PAN directory of such traders to Income Tax (IT) Department, to verify the genuineness of the traders, the IT Department has not sent any response. This petition was filed for a Writ of Mandamus directing the respondent to conduct a high level investigation to identify leakage of tax income. The petition was entertained by Hon. Madras High Court and the respondent was asked to file counter.
CFMA filed a writ petition no. 814 of 2021 against Ministry of Law & Justice, Union of India (UOI) praying to constitute permanent Bench of the Securities Appellate Tribunal (SAT) at Chennai. Any person aggrieved by an order made by an Adjudicating Officer/SEBI, in order to appeal to SAT, Mumbai is put to severe hardship and compelled to spend exorbitant amounts on finding a counsel, etc. As this is violative of fundamental right as provided under Articles 14 & 21 of the Constitution of India, this petition was filed for a Writ of Mandamus directing the respondent to establish and constitute permanent Bench of the SAT at Chennai. The fact that SAT was not established in Chennai is also in violation of the Judgment of the Hon’ble Supreme Court in the acse of Swiss Ribbons which has followed the earlier judgment of the Hon’ble Supreme Court in the Madras Bar Association case. The Hon. Madras High Court has entertained the petition and ordered notice to the respondents.
CFMA filed a writ petition no. 4299 of 2020 against Ministry of Health and Family Welfare, Union of India (UOI) & others for a Writ of Declaration to declare the entries in the Schedule to Section 3 (p) read with Section 2 (p) (more particularly, Entry No.6- Chewing Tobacco, Entry No.8- Pan Masala & Entry No.9- Gutkha) of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA) as invalid in law, opposed to public health, safety and policy. The Hon. Madras High Court has entertained the petition and ordered response to be filed by the respondents.
CFMA has also filed a complaint to SEBI against MCX data theft scandal which is an issue of immense public importance since confidential data was shared to IGIDR (an institute of research) for alleged research but the same was ,issued for commercial purposes. The legality of such transfer of confidential data is still very much is question. SEBI has not taken any effective action on the complaint and CFMA is going to be challenging the non action in a manner known to law.