NSE Co-Location Scam: Delhi High Court Rejects Chitra Ramakrishna's Plea Against PC Act Provisions
The Delhi High Court on Thursday dismissed a plea filed by former CEO of National Stock Exchange Chitra Ramkrishna, challenging the constitutional validity of definitions of public duty and public servant under the Prevention of Corruption Act. [2026 LiveLaw (Del) 637]A division bench comprising Justice Navin Chawla and Justice Ravinder Dudeja held that there is no vagueness in the definition...
The Delhi High Court on Thursday dismissed a plea filed by former CEO of National Stock Exchange Chitra Ramkrishna, challenging the constitutional validity of definitions of public duty and public servant under the Prevention of Corruption Act. [2026 LiveLaw (Del) 637]
A division bench comprising Justice Navin Chawla and Justice Ravinder Dudeja held that there is no vagueness in the definition of “public servant” as the provision is specific and applies to a person who holds an „office‟ by virtue of which he is empowered to perform a „public duty‟, that is, a duty in the discharge of which the State, the public or the community at large has an interest.
It added that merely because every such „office‟ has not been mentioned in Section 2(c) of the PC Act, the said provision cannot be termed as vague or uncertain, so as to be violative of Articles 14 or 21 of the Constitution of India.
The Bench further held that the National Stocks Exchange (NSE) performs a „public duty‟, as it performs very vital economic functions in the public interest.
It was observed that Ramakrishna, in the internal management of the NSE, can be said to be performing a public duty, and how far she was in-charge of the day-to-day functioning and general policy decisions of the NSE, including the act or contract complained of in the chargesheet, are matters of evidence.
“These cannot, therefore, be determined at this stage and/or the chargesheet itself be quashed by determining such mixed questions of facts and law,” the Court said.
The Bench also held that the Sanction Orders issued by the Board of Directors of the NSE were accompanied with the clarification that the question whether Ramakrishna was a public servant and whether the PC Act applies to the NSE, was not being admitted by the Board of Directors of the NSE.
“The Sanction Orders also cannot be set aside only on this ground, as the answer to the same would require consideration by the learned Trial Court on the basis of the evidence led before it. In view of the above, we do not find any merit in the present petition. The same, along with the pending application, is accordingly dismissed,” the Court said.
Ramakrishna was granted default bail by the High Court in September 2022. CBI's challenge to the same was rejected by the Supreme Court in February 2023.
The FIR was registered by CBI under sections 120B and 204 of Indian Penal Code, Sections 7, 12, 13(2) read with 13(1)(d) of the Prevention of Corruption Act and Section 66 of the Information Technology Act.
CBI is probing an alleged improper dissemination of information from the computer servers of the market exchange to the stockbrokers.
According to CBI, it was alleged that the probe revealed that Ramkrishna allegedly hired Subramanian as consultant in NSE without following the due procedure and also by coercing the HR Department.
Subramaniam, Ramkrishna and former CEO Ravi Narain were showcaused by the Security and Exchange Board of India (SEBI) for various corporate governance lapses.
CBI had thereafter arrested Ramkrishna and a Special Court had sent her to the custody.
SEBI had levied penalties on Ramkrishna and others for violating rules while appointing Subramaniam as Chief Strategic Advisor.
It was alleged by the probe agency that Chitra in conspiracy with Subramanian influenced the NSE officials to facilitate him in having access to important decision making processes.
Title: Chitra Ramakrishna v. UNION OF INDIA & ANR
Citation: 2026 LiveLaw (Del) 637