BJP leader Subramanian Swamy has lodged a public interest litigation (PIL) before the Delhi High Court alleging a scam of around Rs 5,100 crore in Axis Bank making undue gains through transactions in shares of Max Life Insurance.
The plea states that there was blatant fraud in Max Life Insurance and Max Financial Services allowing their shareholder, Axis Bank Limited and its group companies, Axis Securities Limited and Axis Capital Limited to make undue profits from the purchase and sale of equity shares of Max Life in non-transparent manner.
The BJP leader alleged that the transactions were in violation of the mandatory directions of the Insurance Regulatory and Development Authority of India (IRDAI). He further contended that the transaction should be investigated by a committee of experts.
A Division Bench of Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora heard the plea today. Appearing for Subramanian Swamy, Senior Advocate Rajshekhar Rao contended that for much smaller offences, the Enforcement Directorate (ED) has come into action but even though the total quantum in this case is more than Rs 5,100 crore, nothing has been done.
Meanwhile, Senior Advocate Mukul Rohatgi, representing Axis Bank said that he has not been served an advance copy of the petition. He added that though an email was sent to his side, the petition attached could not be opened. Following, the bench asked Swamy’s counsel to provide a copy of the plea to Axis Bank’s counsel and adjourned the case to March 13.
In the plea, the BJP leader argued that the issue is of national importance and financial security of the citizens of the country. He further asserted that Axis Bank group companies bought 12.002 % shareholding in Maxlife, Rs 31.51/ Rs 32.12 per share at total consideration of Rs 736 crores, which is evidently below the fair market value. The plea added that though the IRDAI imposed a penalty of Rs 3 crore on Max Life for misrepresentation, the penalty is negligible compared to the total fraud committed.
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