The finance ministry had proposed to give additional charge to Anjan Dey,CMD of Delhi based Oriental Insurance Company, till the appointment of a new CMD of the Mumbai-based NIA, sources said.
The insurance sector regulator IRDAI has sought clarification from the government on the proposal of giving additional charge to Dey, citing some provisions of the Companies Act
Delhi & Mumbai
Even as Atul Sahai, CMD, New India Assurance,who is calling it a day in the month end, has declined an extension in the office, the government will soon decide on giving additional charge of the post to another CMD of a public sector general insurance company.
Ministry sources point out that government was keen to extend the services of the Sahai by a few months but Sahai had expressed his unwillingness to accept it.
Also, the Banks Board Bureau (BBB), which has formed to select executive directors and MD & CEOs of PSU banks since 20216 and has been selecting directors and CMDs of PSU general insurance companies since 20218, has not started the process for selection of the head of the country’s largest public sector general insurance firm as the Delhi High Court had observed that the Bureau is not a competent body to appoint a directors in PSU general insurers.
The court held that circulars enabling BBB to select the GM and directors of government-owned general insurers are not legally valid.
There is also a current case pending with the Delhi HC, where Inderjeet Singh,general manager, NIA, has challenged government act of appointing Satyajit Tripathi as CMD of United India Insurance(UII) who was selected by the BBB a few months back.
The next hearing of the case is scheduled on March 21.
Though normally, for a temporary period, the government gives additional charge of CMD to two senior general managers or directors of the same company, in case of NIA, the practice is not being followed as Singh, who is the senior most general manger, has gone to the court against the the decision of the government, said the sources.
The finance ministry had proposed to give additional charge to Anjan Dey,CMD,Oriental Insurance Company till the appointment of a new CMD of the Mumbai-based NIA, sources said.
However sources at ministry of finance (MoF) said the insurance sector regulator IRDAI has almost rejected the proposal after seeking clarification from the government on the issue and citing some provisions of the Companies Act.
The IRDAI pointed out that NIA is a listed entity on the stock exchanges and has to follow all listing norms.
New India Assurance had reported a net profit of Rs 1,605 crore in 2020-21.