sachin (GM) 26 September 2010

case of Fraud in NSE Arbiteration

I have come to know that according to the Supreme Court Judgement in the serious allegations of Fraud and Criminal Misappropriation the matter can only be decided by court and not by the Arbitrator. In my case fraud / Cheating and Cyber Crime involving sending of fraudulent statements through e- mail is noticed against which i have lodged the complaint to EOW / Police Dept.

SC Ruling - Arbitration and conciliation act - Serious allegations of fraud and criminal misappropriation - Can only be decided by Court when parties lead detailed evidence and not by the Arbitrator. 2009(3) Apex Court Judgments 643 (S.C.).

As i have consulted lawyers i am highly confused , they say i should not avoid arbitration. however arbitration does not have powers to decide in this case. Others say i should go to civil court + criminal court to get justice. I am confused.

I am unable to find the proper guidance from the SEBI / NSE Website. In this very case what should be my Legal course of action. Pls. guide accordingly, to seek justice. Will arbitration be of any help to me? Will the judgment of arbitration hold good in the case of fraud / criminal misappropriation? Will the revised fees of Rs. 30,000/- be reversed in that case?

Also pls. suggest some competent Lawyer with relevant experience of nse arbitration matters if possible.

Looking Forward to an early reply.

Thanks,

SACHIN BHARDWAJ

Mobile – 98109 33322

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16 Replies

V. VASUDEVAN (LEGAL COUNSEL) 28 September 2010

Mr. Bhardwaj,

There is no need for confusion. For the fraud and cheating you should file a criminal complaint with the Economic Offence Wing of the Police. In case during the investigation police could link the money earned by fraudulent means, the money lying in the bank account can be seized by the court, pending trial. Separately

you can take the arbitration course for the dispute and explore the possible of amicable settlement as well.

vasudevan

1 Like

K.L. Wadhwa (Retired) 01 October 2010

Mr. Bhardwaj,

Please do not commit the mistake of going in for arbitration in NSE. A large number of Arbitrators retained by NSE, are biased in favour of Stock Brokers, they are corrupt and are cheats. They do not care for documentary evidence but give awards for some 'other considerationbs'. According to a recent survey, over 80 percent cases go against the investors. Once you go in for arbitration and get a negetive award, you will be looser. Do not waste time and hire some good criminal lawyer and file a case under 156(3) Cr.PC and section 200 private complaint.

As a victim myself, I know it from first hand. Please do not apply for arbitration. File a criminal case as advised by some other member in this forum. If you want a personal advice, I am available in New Delhi.

K.L. Wadhwa

09871150407

1 Like

sachin (GM) 01 October 2010

Thanks, for your guidance. Now we have made a forum where we are filing an FIR in the Economic Offence Wing ( Crime Branch ) as the matter is involving more than a crores of Rupees and we know that it is just a tail of the elephant. Now, We are already 10 victims / complainant and i am sure more will join at the time of Investigation / Case. If you know someone you can also refer to join us in the fight against the Religare. We are also in the process whereby we will be involving the Media also in the exposure of the Religare Scam. Together we can fight and will be in strong position to win the case as well. We would like tp take up the matter in the civil as well as criminal court.

But i think it will be quite time consuming. It has also come to notice, in past experiances, that Crime branch officials also do not usually go against the broker and are engaged in supressing the facts and accept bribes from the big hands of broker.

Your advice will help us a long way. You are victim of Religare or Advocate. Thanks,

Sachin

K.L. Wadhwa (Retired) 01 October 2010

Dear Mr. Sachin,

I am not an Advocate but a victim of another stock broker, Sharekhan Ltd. My complaint for criminal breach of trust, cheating and cyber crime is being investigated by Cyber Cell of EOW of Delhi Police. I am a victim of unauthorized trading by a sub broker of Sharekhan from my password protect internet account. The unauthorized trading took place while I was abroad. I am staying in South Delhi.

Thanks

K.L. Wadhwa 9871150407

SACHIN AGARWAL (ADVOCATE) 04 November 2010

You can lodge a criminal complaint in the matter and also you should go for arbitration. In case you feel that the arbitrator is not fare in proceedings and is prejudice, you can move to High Court having jurisdiction in the matter u/s 11 of Arbitration and Conciliation Act, 1996 for change of arbitrator.

Lokesh Kumar V (Advocate) 07 November 2010

in Arbitration proceedings, you can seek remedy for the monetary loss suffered by you and u can also ask for compensation for the fraud committed by the company. if the fraud is proved in the arbitration proceedings, may be you can win. apart from punishing the company by filing criminal complaints it is also necessary to seek remedy for your loss.

it is not necessary that the arbitrators favour NSE. one of my client initiated arbitration proceedings against NSE and claimed relief of Rs.35 L in the arbitration proceedings and he was awarded five laksh along with interest. other reliefs were dismissed as time barred. so you can very well initiate arbitration proceedings.

rahul (senior manager) 14 November 2010

DEAR MR KL WADHWA ,

HAVE JUST GONE THROUGH YOUR CASE AND JUST WANTED HELP AS IAM ALSO A VICTIM OF CYBER CRIME I.E ONE OF THE SUB BROKERS OF OJ SECURITIES LTD HAS DONE UNAUTHORISED TRADES IN MY ACCOUNT WITH MY ID AND PASSWORD ,I.T TO THE TUNE OF 37 LAKHS .CAN U PLEASE ADVICE IN PATICULAR AS TO WHAT SHOULD BE COURSE OF ACTION AS IAM TOTALLY CONFUSED , AND PLEASE ALSO LET ME KNOW WHETHER I SHOULD FILE AGAINST THE SUB BROKER OR THE BROKER ...

THANKS

RAHUL

Originally posted by :sachin

I have sent a complaint to NSE /SEBI/ EOW on 24 / 06 / 10, in respect of Fraud / Cheating amounting to Rs 70 Lacs (approx.) by the Officials of M/s Religare Securities Ltd. In this regard I was advised to go to the Arbitration of NSE because of arbiteration clause in agreement.

I have come to know that according to the Supreme Court Judgement in the serious allegations of Fraud and Criminal Misappropriation the matter can only be decided by court and not by the Arbitrator. In my case fraud / Cheating and Cyber Crime involving sending of fraudulent statements through e- mail is noticed against which i have lodged the complaint to EOW / Police Dept.

SC Ruling - Arbitration and conciliation act - Serious allegations of fraud and criminal misappropriation - Can only be decided by Court when parties lead detailed evidence and not by the Arbitrator. 2009(3) Apex Court Judgments 643 (S.C.).

As i have consulted lawyers i am highly confused , they say i should not avoid arbitration. however arbitration does not have powers to decide in this case. Others say i should go to civil court + criminal court to get justice. I am confused.

I am unable to find the proper guidance from the SEBI / NSE Website.  In this very case what should be my Legal course of action. Pls. guide accordingly, to seek justice. Will arbitration be of any help to me? Will the judgment  of arbitration hold good in the case of fraud / criminal misappropriation? Will the revised fees of Rs. 30,000/- be reversed in that case?

Also pls. suggest some competent Lawyer with relevant experience of nse arbitration matters if possible.

Looking Forward to an early reply.

Thanks,

SACHIN BHARDWAJ

Mobile – 98109 33322

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE ) 14 November 2010

Mr wadhwa you got wrong information about NSE arbitration , it is quick amd cetainly fair.

Pl give instance actual case where arbitrators have cheated at NSE.

K.L. Wadhwa (Retired) 14 November 2010

It only shows you have not gone through the texts of various arbitration awards put on NSE official website or may be you, as an advocate, have been defending only stock brokers before NSE Arbitrators. Please find me a single award which is fair and has gone in favour of a constituent whereas you will lfind hundreds of awards that are unfair, biased and smack of arbitrary decisions far away from the facts.

RADHE SHYAM PODDAR (DIRECTOR) 27 February 2011

I am also sufferer of a NSE Arbitrator Award, although the Ashlka Stock Broking could not provide the documents which was I asked to provide and that was also Arbitrator mentoned in miniutes of hearing.

but at the time Award Arbitrator not botherd that broker firm had not provided documents which was asked to provide in support of their so called cliam and reward was given in favour of broking firm

Radhe

sachin (GM) 06 May 2012

This is issued in Public Intrest and to request the investors to choose Arbitrators wisely :

Please have a Look at the data from NSE Website regarding Broker Religare Securities ltd. and the Arbitrator - Justice M A Khan (Retd.) which will proove how M A Khan is biased towards broker and is passing Awards against Investors. Intrestengly he knowingly avoids the NSE / SEBI rules regulations and Byelaws and the Awards passed are arbitrary. He was the Presiding arbitrator in my Arbitration Case in NSE and i was so much terrified by the awards passed by him (although he always pretended that he is favouring me and is in favour of investors) that i requested him to withdraw from my Proceedings and the Tribunal withdraw from my case.

Awards in favour of Client is an eyewash and actually are in favour of Religare only and just to show that clients also win, defective award are passed in favour of Investors,
who are small investor and can not bear the costs of Litigation. Role of NSE is to pick up the words and lines in favour of Client and declare him as winner of Award,
whereas in reality the award is in the the interest of Broker .

SN	Arbitration Reference No.	Region	Name of Client	Type of Client (Applicant / Respondent)	Name of Member	Name of Arbitrator(s)	Award in favour of
1	F&O/D-0007/2010	Delhi	Harihar Nath Mathur	Applicant	Religare Securities Ltd	Justice M A Khan(Retd.)	Claim Dismissed
2	CM/D-0005/2010	Delhi	Dharmesh Saxena	Applicant	Religare Securities Ltd	Justice M A Khan(Retd.)	Client
3	CM/D-0020/2010	Delhi	Kunti Saxena	Applicant	Religare Securities Ltd	Justice M A Khan(Retd.)	Client
4	F&O/D-0002/2010	Delhi	Pawan Kumar Verma	Applicant	Religare Securities Ltd	Justice M A Khan(Retd.)	Client
5	F&O/D-0005/2010	Delhi	Hari Om Agarwal	Applicant	Religare Securities Ltd	Justice M A Khan(Retd.)	Claim Dismissed
6	F&O/D-0039/2010	Delhi	Nathu Ram Yadav	Applicant	Religare Securities Ltd	Justice M A Khan(Retd.)	Claim Dismissed
7	CM/D-0003/2011	Delhi	Mathew Mammen	Applicant	Religare Securities Ltd	M A Khan	Claim Dismissed
8	F&O/D-0051/2010	Delhi	Dr M L Sharma	Applicant	Religare Securities Ltd	M A Khan	Claim Dismissed
9	FO/D-0074/2011	Delhi	Kapil Bhardwaj	Applicant	Religare Securities Ltd	M A Khan	Dismissed
10	FO/D-0053/2011	Delhi	Varun Mishra	Applicant	Religare Securities Ltd	M A Khan	Dismissed
11	FO/D-057/2010	Delhi	Mohinder Kumar Rohilla	Respondent	Religare Securites Ltd	Justice M A Khan	Dismissed
12	F&O/D-0070/2011	Delhi	Aparna Krishnamurthy	Applicant	Religare Securities Ltd	M A Khan	Client
13	FO/D-058/2011	Delhi	Anupama Malik	Applicant	Religare Securities Ltd	Justice M A Khan	Dismissed
14	FO/D-109/2011	Delhi	Sunita Sood	Applicant	Religare Securities Ltd	Justice M A Khan	Dismissed
15	FO/D-093/2011	Delhi	Sunil Kumar Aggarwal	Applicant	Religare Securities Ltd	Justice M A Khan	Member
16	CM/D-073/2011	Delhi	Gulraj Jain	Applicant	Religare Securities Ltd	Justice M A Khan	Member
17	F&O/D-0108/2011	DELHI	Ms. Ruchin Agarwal	Applicant	Religare Securities Ltd	M A Khan	Dismissed


All the winners of awards and True picture of what they have won is as follows :
1	Dharmesh Saxena		Client got =Rs. 1000, for defeciency of service against claimed Rs. 3,13,827/-
2	Kunti Saxena		Client got Cost = Rs 1000, against claim of Rs. 1,24,805
3	Pawan Kumar Verma		Client got Rs. 3000 , Claimed amount was Rs. 50,000/-
4	Mohinder Kumar Rohilla		Claim of RSL dissmissed but Counter Claim of 1 Lac of Investor neglected by M A Khan even when it was prooved
			that RSL did unauthorised Trading in Client account.
5	Aparna Krishnamurthy		Award is said to be in favor of Applicant and RSL was instructes to Return Shares to her that were sold after Revocation
			of POA But RSL aslo was suggested to Recover the outstanding debit from her in Trading account.

	Justice M A Khan (Retd) : Client Failure Rate in matters of Religare Securities Ltd. = 100%
	Arbitrator who passes Maximum awards against Client is favoured and grabs Maximum Cases from NSE

Sachin Bhardwaj

M: 8802229962

sanjay (sales) 31 August 2013

Dear Mr sachin,

any further developemnt on this case .. can you please update me , we are also victims of this . need help in fighting a big broker from Delhi .

sanjay (sales) 31 August 2013

Mr sachin, I was also checking the statistics of awards given on NSE and also BSE . 90 % awards are in favour of the brokers . with investors being left high and dry .