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Sahara to challenge Irdai order

Sahara alleged that insurance regulator has 'wrongly concluded' that it was no more 'fit and proper'

Press Trust of India  |  New Delhi 

ICICI Prudential Life Insurance

Embattled group on Sunday said it would approach court against order directing transfer of its life insurance business to Prudential and alleged that the insurance regulator has “wrongly concluded” that the promoter was no more ‘fit and proper’ and a sum of Rs 78 crore was siphoned. In a statement following (Insurance Regulatory and Development Authority of India) order dated July 28, the group said Life business is being “wrongfully” given to Prudential Life Insurance. Life is doing business since 2004 and since past 7 years running continuously in profit and has been in absolute and strict compliance of all regulatory norms and directions issued by Irdai,” the group said. It further said Life’s asset is more than its liability and there is not a single complaint of non-payment by any policy holder. “However it is unfortunate that has handed over Life business to other insurance company Prudential,” the group alleged. Giving a point-wise rebuttal to the charges of Irdai, the group said the main allegation talks about the promoter company’s promoter shareholder Subrata Roy Sahara, having been incarcerated, which was a judicial custody, and therefore the promoter company of life insurance venture is no more “fit and proper”. This was also the reason of action against Mutual fund by another regulator Sebi.

The group had challenged this Sebi order before the Securities Appellate Tribunal which last week upheld the regulator’s order but granted a stay of six weeks to allow the company file an appeal before the Supreme Court, which is already hearing a long running case regarding the group.

First Published: Sun, July 30 2017. 23:41 IST