Under 100 Words: A Compact Summary
Subramanian Swamy files a Delhi High Court petition alleging a ₹5100 crore scam involving Axis Bank and Max Life, seeking an expert committee investigation. He highlights Axis Bank’s history of profiteering and asserts corruption undermines citizens’ rights. The court schedules a hearing for March 13, 2024. Advocates Raj Shekhar Rao, Satya Sabarwal, and Tanya Arora represent Swamy. Respondents are represented by Mukul Rohatagi, Rajeev Nayyar, and Neeraj Kishan Kaul (Subramanian Swamy Pursues Legal Action).
- Former Rajya Sabha MP and BJP leader Subramanian Swamy filed a petition in the Delhi High Court on Thursday, accusing Axis Bank of a nearly ₹5100 crore scam (Subramanian Swamy Pursues Legal Action).
- According to Bar and Bench’s report, Swamy alleged that the private lender had made unjust gains through transactions involving shares of Max Life Insurance (Subramanian Swamy Pursues Legal Action).
- Swamy has approached the court, urging the formation of a committee comprised of experts to investigate the ‘alleged fraudulent acts,’ as reported by news agency ANI.
- Swamy has requested an investigation into the alleged fraudulent activities of M/s Max Life Insurance Co. Ltd and M/s Max Financial Services Ltd. He claims that these entities allowed their shareholder, Axis Bank Ltd, and its group companies, namely Axis Securities Ltd and Axis Capital Ltd, to gain undue profits from the non-transparent buying and selling of equity shares of Max Life.
- According to an ANI report, Swamy’s plea also asserts that the respondents’ actions amount to the misuse of Axis Bank Limited’s dual relationship as both a shareholder and a corporate agent of Max Life and MFSL.
- The plea highlights a clear misrepresentation by the respondents before the Insurance Regulatory and Development Authority of India (IRDAI), along with non-compliance with its directives, to secure prior approval for the transfer of shares.
- The plea additionally contends that a carefully planned conspiracy existed, allowing Axis Bank Limited and its group companies to unjustly profit from the buying and selling of equity shares of Max Life (Subramanian Swamy Pursues Legal Action). This misuse allegedly stems from their dual relationship with Max Life, functioning both as a shareholder and a corporate agent.
- The plea asserted that Axis Bank Limited has a history of involvement in illegal and unlawful profiteering, despite facing numerous penalties in the past (Subramanian Swamy Pursues Legal Action). Therefore, the current transaction needs to be examined with a sense of suspicion.
- In his plea, Swamy requested the court to direct an investigation into the matter by a Committee of Experts appointed by the court (Subramanian Swamy Pursues Legal Action). He also sought guidance on the formulation of appropriate and comprehensive guidelines, aligning with the committee’s recommendations, to prevent future acts or transactions of a similar nature and to regulate arrangements entered into between banks or other financial/insurance institutions.
- The plea stated, ‘The widespread corruption in the banking and insurance industry in the country, coupled with the apparent reluctance of the executive to take necessary action to ensure the punishment of wrongdoers, seriously undermines the people’s right to live in a corruption-free society.’
- According to ANI, the plea contended that this violation goes against Articles 14 and 21 of the Constitution of India, as the right to life guaranteed to the people encompasses the right to live in a society free from corruption and upholds the rule of law.
- Senior Advocate Raj Shekhar Rao and Advocates Satya Sabarwal and Tanya Arora represented the petitioner, Subramanian Swamy (Subramanian Swamy Pursues Legal Action). Meanwhile, senior Advocates Mukul Rohatagi, Rajeev Nayyar, and Neeraj Kishan Kaul appeared for the respondents.
- The bench, comprising Justice Manmohan and Justice Manmeet Pritam Singh Arora, instructed the petitioner on Thursday to serve the petition copy to all respondents and scheduled the matter for March 13, 2024.
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