Read here how our Netas and Babus used devious ways to Kill FTIL
After reading Shantanu Guha Ray’s book ‘The Target’, I realized how deep rooted the Neta-Babu nexus is in India. The book explains this in thorough detail, how a few bureaucrats conspired with a powerful politician to bring down the FTIL group led by Jignesh Shah.
KP Krishnan, the Joint Secretary in the Ministry of Finance of the UPA-2 Government, was an instrumental figure in the downfall of the FTIL group. He was acting on the behest of his master P Chidambaram, the then Finance Minister.
RTI documents have revealed that Krishnan was favouring NCDEX, which was promoted by NSE. This is despite the fact that NCDEX was under the regulatory purview of Ministry of Consumer Affairs (MoCA) and not the Ministry of Finance. In July 2013, the day Krishnan returned to his post in the Ministry of Finance, the MoCA ordered the NSEL to stop issuing fresh contracts, which brought all the trading to a sudden halt. This led to the crisis and chaos on the exchange.
Krishnan pushed hard for bringing the market regulator FMC under the Finance Ministry from the MoCA. He was successful. In December 2013, the FMC passed an order declaring Jignesh Shah and his company ‘Not Fit & Proper’ to run any exchange, forcing their abrupt exit from India and abroad. Furthermore, based on FMC’s recommendations the Ministry of Corporate Affairs passed a merger order of NSEL with its parent FTIL.
Thus, the deadly poison of Krishnan led to the crumbling of Jignesh Shah’s empire.
Reference: Shantanu Guha Ray: (2016): ‘The Target Book’: New Delhi: Publisher: AuthorsUpFront
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