In connection with the NSE co-location scam, the ED has summoned former Mumbai CP Sanjay Pandey

The Enforcement Directorate (ED) has summoned former Mumbai Police Commissioner Sanjay Pandey to appear before them in Delhi on Tuesday (July 05) in connection with the agency's continuing investigation into the NSE co-location case. Pandey, an IPS officer from the 1986 batch, retired on June 30.

 

Pandey did not respond to the calls and emails he received. According to the summons issued on Saturday, which FPJ obtained a copy of, Anil Kumar Monga, Assistant Director, ED, was investigating the provisions of the Prevention of Money Laundering Act and considered Sanjay Pandey's attendance necessary in connection with the investigation.

 

Pandey has been summoned to the ED's Delhi office on July 5 to state in connection with the case's investigation. Co-location is a setup in which the broker's computer is located in the same area as the Stock Exchange's server. This particular server configuration provides a speed advantage to brokers who use the co-location facilities over other brokers.

 

Until 2014, information was distributed by exchange server to brokers connected to co-location facilities via TBT-based system architecture. Data was distributed sequentially in this system, giving stock brokers who connected to servers with lower traffic an unfair edge.

 

The ED conducted searches in numerous places in Delhi and Gurugram in April of this year in connection with the co-location scam case. Pandey's IT firm is apparently under investigation by the Central Bureau of Investigation (CBI) for allegedly failing to notify an NSE server breach in the co-location fraud being investigated by the CBI. From 2010 to 2015, when the co-location scam is thought to have occurred, the claimed firm was one of the IT firms charged with conducting security assessments at NSE.

 

On May 28, 2018, the CBI filed a case against the owner and promoter of a New Delhi-based private company, unknown officials of the SEBI and the NSE, Mumbai, and other unknown individuals for criminal conspiracy, attempt to give and receive a bribe, misuse of official position and destroying evidence. The ED then initiated a money-laundering probe into the case.

 

 

Image Courtesy: Twitter @fpjindia