The race for the top job at the country's largest life insurer, Life Insurance Corporation (LIC), has entered its last lap. The search committee for the chairman’s post has shortlisted two candidates.
According to sources, Sushobhan Sarkar, who is currently an executive director and heads LIC's international operations, has been shortlisted along with the corporation’s interim chairman D K Mehrotra.
Mehrotra was appointed acting chairman at the end of May for three months, till end-August.
Sources say the government is looking for a candidate not linked with LIC's investments as the Central Bureau of Investigation (CBI) is still probing those made by the corporation in 2008 and 2009. Due to the probe, the government demoted T S Vijayan, the then LIC chairman, as a managing director. Thomas Mathew, who was also interviewed for the chairman’s post, had been looking after investment since Vijayan became chairman.
According to sources, Sarkar came into the fray due to his clean image during his tenure as the head of LIC Mutual Fund and the investment department.
There is a precedent in LIC that an executive director has been elevated to the chairman’s post. In 2000, G N Bajpai, who was an executive director, was elevated to the chairman’s post.
Early this year, after a committee constituted by the finance ministry found flaws in investments made by LIC during 2008 and 2009, the Central Vigilance Commission recommended a probe.
The uncertainty for the top post arose after Vijayan was denied extension when his term came to an end on May 2 and he was demoted.
Subsequently, Vijayan went on leave and is yet to resume his duties.
The government had formed a committee headed by economic affairs secretary R Gopalan to select the next chairman.
