Bombay Leaks Desk
Mumbai :A PIL is filed by two Petitioners namely Mr. Shaukat Ali M. Betgeri, a social worker, member of Maharashtra Govt Suburban Minority Development Committee and Mr. Kiran B. Mehta, shareholder of BSE Ltd since no action has been taken by various statutory authorities like SEBI, BMC, Mumbai Police, etc. regarding wrongs and illegalities which are of serious and gross nature. The said authorities have ignored these wrongs and illegalities and have continued to allow it.
Certain details of wrongs and illegalities mentioned in the PIL are as under:-
1. A scheme of Corporatisation and Demutualisation of BSE Ltd was sanctioned by SEBI vide SEBI notification dated 20th May 2005. Under this scheme, BSE Ltd was required to dilute its 51% stake to Public within 12 months from date of this order with provision of obtaining extension of another 12 months u/s 4(B)8 of SCRA. But instead of diluting stake of 51% to Public, BSE Ltd had sold 5% each to Deutsche Boerse AG and Singapore Exchange Ltd and 4% each to Katriel Investments Ltd, Dubai Financial LLC, Caldwell Asset Management Inc, and Atticus Mauritius Ltd, which comes to 26% stake selling to foreign entities which don’t fall within the purview of definition of Public. No whereabouts of Katriel Investments Ltd are traceable. In spite of this gross illegalities, the SEBI issued notification dated 29th June 2007 declaring that BSE Ltd had complied with conditions of Scheme as required for u/s 4(B) of SCRA when actually SEBI ought to have rejected this wrongful and illegal dilution of 51% stake and should have cancelled and rejected scheme of Corporatisation and Demutualisation of BSE Ltd.
2. BSE Ltd has totally violated the provisions of law restricting free movement of public and their respective vehicles on three public roads approaching its premises by erection of permanent structure / barricades in the absolute control of a private entity without following due process of law to obtain prior sanction of statutory authorities like Municipal Corporation, Police, RTO etc. on account of these wrongs and illegalities BSE Ltd was required to pay huge amount of penalty which it has not paid and authorities have failed to recover resulting in to loss of public money to authorities concerned due and payable to it by a private entity for whose benefit it was allowed to erect and control permanent structure / barricades for restricting free movement of public and their respective vehicles on three public roads in total violation of provisions of law.
3. BSE Ltd has been occupying the premises and structures constructed on lands which are in the name of earlier Association of persons and no transfer of rights have taken place till this date. Over and above this, BSE Ltd had applied for double FSI while constructing P. J. Towers for which it had no locus standi since properties were not transferred in its name. BSE Ltd ought to have surrendered its 50% FSI before applying for Corporatisation and Demutualisation scheme. No Occupation Certificate has been issued in respect of Rotunda Bldg of BSE Ltd yet for which an order was passed by the Hon’ble Bombay High Court on 09-06-2016 in Writ Petition no 1532 of 2013. Even thereafter there is no compliance of the said order and contempt proceedings are pending.
Hence the Petitioners have prayed for:-
• To appoint SIT to investigate in to all these wrongs and illegalities or to appoint any Government agency for this purpose.
• To direct concerned authorities, who are respondents in the petition to take action within time limit.
• To set aside Corporatisation and Demutualisation scheme.
• Pending final disposal of this matter, interim order in respect of above prayers.
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