Subramanian Swamy moves Delhi HC seeking probe against Axis Bank

Bharatiya Janata Party (BJP) leader Subramanian Swamy on Thursday urged the Delhi High Court to order a probe into an alleged fraud committed by Axis Bank to make "undue profits" through the sale and purchase of shares in Max Life Insurance.

Private sector lender Axis Bank, presenting its side in a filing with the Bombay Stock Exchange (BSE), said it has obtained all necessary regulatory approvals for transactions - sale and purchase – of shares of Max Life Insurance Company Limited. It adheres to the highest standards of legal and regulatory compliance.

Subramanian Swamy has filed a Public Interest Writ Petition against the Union of India, Axis Bank, Axis Securities Limited, Axis Capital Limited, and others before the High Court of Delhi in connection with the sale/purchase of shares of Max Life, the bank said.

A bench of Acting Chief Justice Manmohan and Justice Manmeet PS Arora listed the public interest litigation (PIL) for further hearing on 13 March after senior counsel appearing for Axis Bank said they had not been served a copy of the plea.

The lender said, “we will also take required steps to defend Axis Bank against any unfounded allegations.” It believes that there is no material impact of the allegations being made against Axis Bank in connection with the said transactions. It has obtained all necessary regulatory approvals in connection with these transactions, the bank said.

Swamy, a former BJP Member of Parliament, sought a direction from the court for constituting a committee of experts to investigate the matter, asserting that the "rot" in private sector banks should be brought to light. In his petition, Swamy has alleged Axis Bank made undue profits totalling Rs 4,000 crore from the sale and purchase of equity shares of Max Life in a non-transparent manner and in violation of the applicable regulations.

“Axis Bank adheres to the highest standards of legal and regulatory compliance, and we are committed to taking actions in compliance with applicable laws,” the lender added.

In response, Axis Bank said, “we will also take required steps to defend Axis Bank against any unfounded allegations.” It believes that there is no material impact of the allegations being made against Axis Bank in connection with the said transactions. It has obtained all necessary regulatory approvals in connection with these transactions, the bank said.