New Delhi: Former Mumbai police commissioner Sanjay Pandey has been summoned by the Enforcement Directorate (ED) on Tuesday, July 5 in connection with a money laundering case, an official from the Central agency said on Sunday. ED has sent the summons to Pandey, who retired from the police force on June 30, on Saturday.Also Read – Amid Maharashtra Crisis, ED Summons Sanjay Raut in Land Scam Case
The agency has reportedly summoned Pandey in a case linked to the National Stock Exchange (NSE) co-location scam. In 2001, Pandey had floated an IT audit firm. Later, he appointed his son and mother as the directors of the firm, according to a report by India Today. Also Read – National Herald Case: ED Summons Rahul Gandhi for Fifth Day on Tuesday
While Pandey was unavailable for comment, the official said the former police commissioner may appear before the anti-money laundering agency in Delhi. Also Read – Sonia Gandhi Discharged From Hospital, to Now Face ED in Money Laundering Case
The official, however, refused to divulge for which money laundering case the summons had been issued to the retired IPS officer.
What Is NSE co-location scam?
The NSE co-location case pertains to a co-location facility offered by the NSE where traders are given space place their servers within the stock exchange premises, giving them faster access to the markets. Between 2010 and 2015, NSE awarded an IT audit contract of NSE servers and systems to a firm named Isec Services Pvt Ltd, but in the said period it did not flag any breach.
The breach, however, allowed one of the trading companies to get unfair access to the system, resulting in windfall profits. 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.