SEBI Consent Order – Is Reliance Mukesh Ambani Guilty of Insider Trading above Indian laws ?
Whistleblower of the SEBI Consent Order Scam and Corruption at High Places, K Abraham former Board Member of SEBI in his letter to the Prime Minister of India has openly said that SEBI Chairman is pressurizing to settle Mukesh Ambani’s Reliance Insider Trading Case for peanuts. Reliance Mukesh Ambani has profited Rs 500 Cr in Reliance Shares Insider Trading and is liable to fine of Rs 1500 Cr.
K Abraham in a letter to the PMO wrote [PDF],
The Chairman asked for the review of the enforcement in this case and personally requested me to see whether the case can be settled through the ‘consent’ mechanism in SEBI. I explained to him that gain by the company, prima facie, established in the investigation has been placed at Rs 500 cr and under the SEBI act the punishment could be up to a maximum of three times the amount. He then requested me to look into the transactions that can get benefit of doubt and be excluded in the computation of unlawful gains. Here again, I could see that he seem to be acting under compulsion to make such a request to me.
So Reliance Mukesh Ambani is liable for a fine of Rs 1,500 Cr. Why is SEBI delaying the matter when it had enough evidence to enforce and collect the fine. If Reliance Mukesh Ambani is penalised for anything less than Rs 1500 Cr, then you all know who all are CORRUPT in this scam 🙂
Laws impose penalty on wrongdoings so that they are not repeated. However, enforcement by officials is so weak or maybe they are corrupt, such crimes and scams keep happening as nobody fears the law anymore in this country. What Say ?