Axis Bank on Monday welcomed the Delhi High Court’s decision to dispose of a public interest litigation (PIL) filed by Bharatiya Janata Party (BJP) leader Subramanian Swamy concerning the transactions with respect to Max Life Insurance.
In February, Swamy filed an PIL before the Delhi High Court seeking a comprehensive probe into the alleged fraud in Axis Bank involving undue profits through the sale and purchase of shares, violating regulatory guidelines and causing financial harm.
The PIL accused Axis Bank of making approximately Rs 4,000 crore in undue profits through non-transparent share transactions in Max Life Insurance.
Swamy also criticised the Insurance Regulatory and Development Authority of India’s (IRDAI) Rs 3 crore penalty on Max Life as insufficient.
On Monday, the high court bench led by Acting Chief Justice Manmohan and Justice Tushar Rao Gedela declined to admit the PIL.
The court also directed the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) to proceed to complete their investigation expeditiously and in accordance with the law.
Senior counsels Mukul Rohatgi and Rajeev Nayar, representing Axis Bank, argued that the PIL was not maintainable.
They cited that the principle of locus standi for PILs applies only in specific conditions, such as cases involving the most disadvantaged individuals, and the petitioner, Swamy, did not meet these criteria.
“The transactions were purely commercial and involved shares of an unlisted company, thus falling outside the purview of writ jurisdiction. Regulatory bodies such as SEBI, RBI, and IRDAI were already handling the matter, making the court’s intervention unnecessary,” the senior counsels argued before the court.
“The allegations which were levelled in the PIL (that now stands disposed of by the high court) are strongly denied. Axis Bank remains committed to conducting business with transparency, fairness, and a focus on delivering value to our stakeholders,” said an Axis Bank spokesperson.
Max Life is a joint venture between Max Financial Services Ltd and private lender Axis Bank.
In February, IRDAI approved Axis Bank’s proposal to purchase another 7 per cent in Max Life for Rs 1,612 crore.
