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NSEL) for Allegedly Causing Obstruction in the Discharge of Parliamentary Duties of Dr i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ii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iii COMMITTEE OF PRIVILEGES (SIXTEENTH LOK SABHA) CONTENTS PAGE Personnel of the Committee of Privileges . (iv) Report . 1 Minutes of sittings of Committee. … 32 Appendices………………………………………………………... 41 iv PERSONNEL OF THE COMMITTEE OF PRIVILEGES (2017-2018) Smt. Meenakashi Lekhi - Chairperson MEMBERS 2. Shri Anandrao Adsul 3. Shri Kalyan Banerjee 4. Shri Anant Kumar Hegde 5. Shri Kesineni Srinivas 6. Shri J.J.T. Natterjee 7. Shri Jagdambika Pal 8. Shri Konda Vishweshwar Reddy 9. Shri Tathagata Satpathy 10. Shri Jyotiraditya M. Scindia 11. Shri Raj Kumar Singh 12. Shri Rakesh Singh 13. Shri Sushil Kumar Singh 14. Dr. Kirit Somaiya 15. Prof.(Dr.) Ram Shankar Secretariat 1. Shri Ravindra Garimella - Joint Secretary 2. Shri M.K. Madhusudhan - Director 3. Ms. Miranda Ingudam - Deputy Secretary 4. Shri K.V.V. Rama Rao - Executive Assistant 1 REPORT OF COMMITTEE OF PRIVILEGES (SIXTEENTH LOK SABHA) I. Introduction I, the Chairperson of the Committee of Privileges, having been authorized by the Committee to submit the eighth report on their behalf, present this report to the Speaker, Lok Sabha on the Notice of question of privilege dated 16 March, 2017 by Shri Sanjay Dhotre, MP (signed by 2 other MPs) against the CEO of National Spot Exchange Ltd (NSEL) for allegedly causing obstruction in the discharge of parliamentary duties of Dr. Kirit Somaiya, MP and Notices of question of privilege dated 17 March, 3 April and 7 April, 2017 given by Dr. Kirit Somaiya, MP on the same subject. 2. The Committee in all held 04 sittings. The relevant minutes of these sittings form part of the Report and are appended hereto. 3. The Committee at their sitting held on 27 July, 2017 considered the Memorandum on the subject. The Committee, thereafter, decided to hear Shri Sanjay Dhotre, MP and Dr. Kirit Somaiya, MP in the first instance. 4. The Committee at their second sitting held on 30 August, 2017 heard Shri Sanjay Dhotre, MP and Dr. Kirit Somaiya, MP and also decided to call the relevant witness namely Shri Prakash Chaturvedi, 2 Chief Executive Officer (CEO), National Spot Exchange Limited (NSEL). 5. At their third sitting held on 09 October, 2017, the Committee examined on oath Shri Prakash Chaturvedi, CEO, National Spot Exchange Limited. The Committee, after some deliberations directed the Secretariat to prepare a draft report in the matter. 6. At their fourth sitting held on 14 November, 2017, the Committee considered the draft report and after some deliberations adopted the same. The Committee, then, authorized the Chairperson to finalize their report accordingly and present the same to the Speaker, Lok Sabha and thereafter, to lay the same in the House. II. Facts of the Case 7. Shri Sanjay Dhotre, MP vide above notice1 signed by 2 other MPs had alleged breach of privilege against the CEO of NSEL (National Spot Exchange Ltd.) for allegedly causing obstruction in the discharge of parliamentary duties of Dr. Kirit Somaiya, MP. The Member stated that Dr. Kirit Somaiya, MP and Chairperson, Standing Committee on Labour has been working for protection of small investors and as a crusader against corruption has exposed several scams including that of NSEL. He alleged that Shri Prakash Chaturvedi, CEO of NSEL had given a representation addressed to Prime Minister‘s Office and copy thereof 1 Appendix I 3 endorsed to several other Ministries/Authorities drawing attention to the alleged attempts made by Dr. Somaiya through various authorities for influencing/instigating action against the NSEL. He further stated that action against NSEL and other fraudsters had already been taken and that NSEL Director, Shri Jagnesh Shah and its Senior Executives are facing imprisonment. The Member requested that strong action be taken against Shri Prakash Chaturvedi, CEO of NSEL and to treat the instant matter as a breach of privilege and refer it to the Committee of Privileges for appropriate action. A copy of the representation submitted by Shri Prakash Chaturvedi, CEO of NSEL was annexed by the Member in support of his contentions. 8. Subsequently, Dr. Kirit Somaiya, MP himself tabled a privilege notice2 dated 17 March, 2017 on the subject, wherein he had contended as under:- (i) The representation of Shri Prakash Chaturvedi, CEO, levying charges against me about corrupt practices and influencing the investigation is not only shocking but also derogatory and hindering my functioning as a Parliamentarian. (ii) More than 13000 small investors lost their hard earned money in the NSEL Scam. I am fighting for them. 2 Appendix II 4 (iii) Almost all the regulators including SEBI, RoC, MCA, EoW, GoM, Commodity Exchange Board, Forward Market Commission, ED, CBI have taken action against NSEL, its promoter, FTIL, Jignesh Shah and various officials of NSEL. (iv) Jignesh Shah and officials of NSEL had been arrested and were in jail for several weeks/months. Now they have written a letter and also put this on social media and used the language for me that ―it is unbecoming of a Member of Parliament‖. (v) In the letter along with various references, CEO, NSEL, has levied various charges against me and also blamed me for things unbecoming of a Member of Parliament. The Member had sought strong action against NSEL officials, particularly Shri Prakash Chaturvedi, CEO. He further stated that he has been threatened that legal action will be taken against him. He added that the CEO has also submitted representations to various Ministers and officials stating that his (Dr. Kirit Somaiya‘s) conduct and functioning is unbecoming of a Member. The Member contended that these actions have brought disrepute to him and his party and the Government and is a coercive practice. He has further stated that :- (a) NSEL fraud has been initially exposed by the activists, journalists and myself. (b) I am a merit-holder Chartered Account and done my Ph.D. in Small Investors Protection (Finance) from Mumbai University. 5 (c) I am a small investors‘ protection activist since long and has been member of Government/SEBI Committees also. (d) As investors‘ activist I have filed several PILs and got justice to small investors. The Member requested that the issue be taken up as breach of privilege and the same be sent to Privilege Committee/Protocol Committee so as to protect him in his functioning as a Member of Parliament. Shri Somaiya, MP vide his further notices of question of privilege dated 33 and 74 April, 2017 substantiated his charges against the CEO of NSEL, wherein he has stated that the Advocate of CEO, NSEL (Shri Prakash Chaturvedi) has sent a defamation notice against him. 9. A copy each of the Member(s)‘ notices were sent to the Ministries of Corporate Affairs and Finance, for their comments. The Ministry of Corporate Affairs vide their factual note dated 30 March, 2017 inter alia stated amongst others that “the action taken by MCA (against NSEL) are in accordance with the law and after following the due office procedures, and there has not been any interference in this, from any person”. 10. In their factual note dated 10 April, 2017, the Ministry of Finance inter alia stated amongst others that “Department of Economic 3 Appendix III 4 Appendix IV 6 Affairs appointed a Special Team of Secretaries (STS) on August, 2013 to suggest measures that could be taken to ensure that there is no systemic impact of the NSEL developments, STS made certain recommendations in their report and the issues relating to such recommendations are being examined/investigated into by certain Ministries/Departments on the basis of which actions have been initiated against the CSEL/FTIL and further investigation is under process. Several cases against the CSEL/FTIL have been filed by various agencies.” 11. The Hon‘ble Speaker, Lok Sabha, after examining the notices of the Member(s) in the matter, in exercise of her powers under Rule 227 of the Rules of Procedure and Conduct of Business in Lok Sabha, referred the matter to the Committee of Privileges for examination, investigation and report on 11 April 2017. III. Evidence Evidence of Shri Sanjay Dhotre, MP 12. During his evidence before the Committee, on 30 August, 2017, Shri Sanjay Dhotre, MP inter-alia stated as follows:- ―Dr. Kirit Somaiya is an Hon‘ble MP and I know him for many years. He was not a member in 15th Lok Sabha, but he fought for 7 small investors like us. He also exposed many cases of corruption. In this case, he spoke against Director, Shri Jignesh Shah & CEO, Prakash Chaturvedi, inside as well as outside the Parliament. SC, HC and ED are investigating this case. Jignesh Shah was arrested and action is being taken against Prakash Chaturvedi. Prakash Chaurvedi tried to pressurize by filing defamation charges.
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