CHENNAI: The Securities Appellate Tribunal (SAT) on Wednesday said there was no urgency for the Insurance Regulatory and Development Authority of India (IRDAI) to order the transfer of life insurance business of Sahara India Life Insurance Company Ltd to SBI Life Insurance . company limited
On the June 2 order of IRDA to transfer Sahara India Life’s life insurance business to SBI Life, the SAT said, “…we find it strange that such steps have been taken after a gap of 5 years and that Even without giving a chance. To listen.
“We find that even when the respondent (IRDAI) vide its order dated June 23, 2017 was directed to service the existing policy holders and collect the renewal premium, there was no urgency in transferring the policies,” it said .
SAT, in its stay order, said that IRDA has passed the life insurance business transfer order ex parte while the appeal filed by Sahara India Life in 2022 is still pending.
According to SAT, IRDAI had ordered transfer of business from Sahara India Life to SBI Life primarily on the ground that its (IRDAI) order dated December 30, 2020 has not been complied with by the insurer.
On December 30, 2020, IRDAI had directed Sahara India Life to recover Rs 78.15 crore from major shareholder Sahara India Financial Corporation Limited within three months and interest thereon within a period of one month.
This amount was diverted from Sahara India Life to Sahara India Financial Corporation in the name of security deposit.
IRDAI, under the same order, directed the life insurer to find ‘fit and proper’ promoters for the existing four promoter companies – Sahara India Financial Corporation, Sahara Care Limited, Sahara India Commercial Corporation Limited and Sahara Infrastructure and Housing Limited. – were no longer covered by the definition of ‘fit and proper’.
Sahara India Life had filed a case in SAT against IRDAI order dated December 30, 2020 and the matter is still pending.
IRDAI on June 2 said that no definite steps were taken by Sahara India Life or the promoters in that regard and only an amount of Rs 8 crore was recovered by Sahara India Life from Sahara India Financial.
SAT had given three weeks time to IRDAI to file its reply in the matter.
“Thereafter the reply may be filed within three weeks. The matter will be listed for admission and final disposal on August 3, 2023 along with the related appeal,” the SAT said.