Embattled Sahara group on Sunday said it would approach court against Irdai order directing
transfer of its life insurance business to ICICI 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
In a statement following Irdai
(Insurance Regulatory and Development Authority of India) order dated July 28, the group said Sahara
Life business is being “wrongfully” given to ICICI
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 Sahara
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 Irdai
has handed over Sahara
Life business to other insurance company ICICI
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 Sahara
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.