Subramanian Swamy has requested Delhi High Court, for an inquiry led by a panel of specialists into the purported deceitful transactions in Axis Bank-Max Life deal.
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NEW DELHI: Dr. Subramanian Swamy has approached the Delhi High Court, alleging a massive financial irregularity involving Rs 5,100 crore in the business dealings between Axis Bank and Max Life Insurance. This case, which has caught the attention of the judiciary, was presented before a Division Bench consisting of Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora.
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The core of Swamy’s petition revolves around transactions that purportedly breach the directives set forth by the Insurance Regulatory and Development Authority of India (IRDAI). Represented by Senior Advocate Rajshekhar Rao, Swamy’s argument hinges on the disparity in enforcement actions, pointing out that for considerably lesser offences, entities like the Enforcement Directorate (ED) have been quick to respond. However, despite the substantial amount involved in this case, exceeding Rs 5,100 crore, there appears to be a lack of action.
On the defense, Senior Advocate Mukul Rohatgi, representing Axis Bank, raised procedural concerns, noting the absence of an advance copy of the petition. Despite an attempt to send the document via email, technical issues prevented the petition from being accessed, leading to a request from the court for Swamy’s counsel to ensure that Rohatgi receives a copy. Consequently, the hearing has been postponed to March 13.
Dr. Swamy’s Public Interest Litigation (PIL) emphasizes the gravity of the issue, framing it as a matter of national importance and financial security for Indian citizens. The PIL scrutinizes the acquisition by Axis Bank group companies of a 12.002% stake in Max Life at a price range of Rs 31.51 to Rs 32.12 per share, amounting to a total consideration of 736 Crores.
This transaction, according to Swamy, was conducted well below the fair market value, leading to an unlawful gain of approximately Rs 4,000 Crores for Axis Bank through the non-transparent sale of equity shares of Max Life.
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Furthermore, the PIL highlights that although IRDAI imposed a penalty of Rs 3 crore on Max Life for misrepresentation, this amount is trivial compared to the magnitude of the alleged scam. This legal challenge by Dr. Swamy not only seeks to address the specific case of Axis Bank and Max Life but also raises broader concerns about the enforcement of financial regulations and the safeguarding of investor interests in India.
As the Delhi High Court prepares to delve deeper into this case, the outcome could have significant implications for the regulatory oversight of financial transactions and corporate governance in the country.
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