Subramanian Swamy moves Delhi HC against Axis Bank, Metlife for allegedly making gains from sale of equity share

New Delhi: Former Rajya Sabha MP Subramanian Swamy on Thursday moved the Delhi High Court seeking direction to form a Committee consisting of experts to investigate alleged fraudulent acts of M/s Max Life Insurance Co. Ltd and M/s Max Financial Services Ltd in allowing their shareholder/Axis Bank Ltd and its group companies viz. Axis Securities Ltd and Axis Capital Ltd to make undue profits/gains from the purchase and sale of equity shares of Max Life in non-transparent manner.
Plea also submitted that the acts on part of the concerned respondents also amount to sheer misuse of the dual relationship of the Axis Bank Limited through its chairman as a shareholder, as well as a corporate agent of Max Life and MFSL. There is a clear misrepresentation by the Respondents before the IRDAI, as also non-compliance with its directions, so as to obtain prior approval for the transfer of the shares.
The bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora on Thursday asked the petitioner to serve the petition copy to all respondents and fixed the matters for March 13, 2024.
Senior Advocate Raj Shekhar Rao and Advocates Satya Sabarwal and Tanya Arora appeared for the petitioner Subramonium Swamy and Senior Advocates Mukul Rohatagi, Rajeev Nayyar and Neeraj Kishan Kaul appeared for the respondents side, in the matter.
Plea alleged that there was certainly a well-thought-out conspiracy, per which Axis Bank Limited and its group companies were allowed to make undue profits/ gains from purchase and sale of equity shares of Max Life, thereby misusing its dual relationship with Max Life as its shareholder and corporate agent. It is also evident that Axis Bank Limited has not hesitated to engage in illegal and unlawful profiteering in the past, despite numerous penalties being imposed upon it; hence, the present transaction requires to be scrutinised through the lens of suspicion, stated the plea.
Swamy through plea seeks direction from court to investigation the matter by a Committee of Experts appointed by it, as also by directing the formulation of proper and comprehensive guidelines in accordance with the recommendations of such Committee, to prevent such future acts/transactions of such nature and to regulate the arrangements entered into between banks or other financial/ insurance institutions.
The rampant corruption in the banking and insurance industry in the country, and the manifest unwillingness of the executive to take requisite action in order to ensure that the culprits are punished, gravely impair the right of the people to live in a corruption-free society. This violates Articles 14 and 21 of the Constitution of India, as the right to life guaranteed to the people also includes in its fold, the right to live in a society that is free from corruption and upholds the rule of law, plea read.