Latest News

Axis Bank Opposes Rs.5100 crore fraud allegation by BJP Leader


➡️ Click here to join our Whatsapp Group

Axis Bank opposed the public interest litigation (PIL) filed by BJP leader Subramanian Swamy in the Delhi High Court. Swamy’s PIL sought an investigation into an alleged fraud of Rs.5100 crore committed by Axis Bank through the sale and purchase of shares in Max Life Insurance, with the intention of making undue profits.

Axis Bank’s senior counsel, along with counsel for Max Life, argued that the PIL was not maintainable as it involved a commercial transaction between private entities. They contended that the aggrieved shareholders, if any, had the capability to approach the court themselves.

Representing Axis Bank and its related companies, senior advocate Mukul Rohatgi argued that the PIL did not specify the class of individuals for whose benefit it was filed. On the other hand, senior advocate Neeraj Kishan Kaul, appearing for Max companies, emphasized that the transaction was purely commercial and had already been examined by the sector regulator.

The counsel for the insurance sector regulator, IRDAI, stated that a possible penalty had already been imposed in relation to the questioned transaction.

In response, senior advocate Rajsekhar Rao, representing Swamy, argued that the issue warranted a closer examination.

The bench, led by Acting Chief Justice Manmohan and Justice Manmeet P S Arora, listed the matter for further hearing on April 3.

In his PIL, Swamy requested the court to form a committee of experts to investigate the matter, highlighting the need to expose the corruption in private sector banks.

According to Swamy’s allegations, Axis Bank made undue profits of Rs 4,000 crore through the non-transparent sale and purchase of equity shares of Max Life, in violation of applicable regulations. The petition stated that Axis Bank sold its stake of 0.998% shares of Max Life to MFSL and Mitsui Sumitomo International in March 2021, only to acquire 12.002% shares from MFSL at a significantly lower price range in March-April 2021. This resulted in unlawful gains of approximately Rs 4,000 crore for Axis Bank.

Although IRDAI imposed a penalty of Rs 3 crore on Max Life, Swamy argued that this amount was negligible compared to the fraud of Rs 4,000 crore committed by Axis Bank.

The petition called for the court’s intervention in directing an investigation by a committee of experts appointed by the court and the formulation of comprehensive guidelines to prevent such fraudulent acts in the future and regulate transactions between banks and financial/insurance institutions.

Furthermore, the petition highlighted the rampant corruption in the banking and insurance industry, emphasizing the executive’s reluctance to take appropriate action, which severely impairs the people’s right to live in a corruption-free society.

One Comment

Leave a Reply

Your email address will not be published. Required fields are marked *