Though, Solicitor General Tushar Mehta, appearing for the IRDA had sought urgent hearing of the matter, SC’s vacation bench presided by Justice Surya Kant said there was no urgency and directed the matter to be heard on July 3
Earlier, in a big relief to Sahara India Life Insurance, the SAT had stayed the Irdai’s order directing the transfer of policy liabilities of around two lakh policies along with assets of Sahara Group firm to SBI Life Insurance Company
New Delhi:
The Supreme Court has fixed July 3 to hear the appeal of the insurance regulator IRDAI against the order of Securities Appellate Tribunal’s on Sahara Life.
The IRDA on Monday moved to the SC challenging the SAT order that had stayed the insurance regulator’s June 2 order directing financially battered Sahara Life’s deteriorating business to be transferred to SBI Life.
Though, Solicitor General Tushar Mehta, appearing for the IRDA had sought urgent hearing of the matter, SC’s vacation bench presided by Justice Surya Kant said there was no urgency and directed the matter to be heard on July 3.
The IRDA in its appeal to SC had said ” Sahara Life’s policyholders assets and liabilities have already been transferred to SBI Life on June 2, 2023, and various steps have been taken by IRDA and SBI Life in furtherance thereof. Any stay of the June 2, 2023, order may preclude SBI Life from effectively servicing the accounts of the policyholders.”
Earlier, the SAT had stayed the Irdai’s order directing the transfer of policy liabilities of around two lakh policies along with assets of Sahara Group firm to SBI Life Insurance Company.
The order comes after Sahara India Life filed an appeal against an order passed by Irdai.
In its order, the appellate tribunal stayed “the effect and operation of the impugned order dated June 2, 2023, till further orders of this Tribunal”.
The matter is now listed for further consideration and arguments on August 3.
Irdai, in its order on June 2, ordered for transferring the entire business of Sahara India Life to SBI Life. Further, the books of accounts, bank accounts, etc were also been directed to be transferred.
The decision was taken at the meeting of the Irdai given the deteriorating financial health of Sahara India Life.
Sahara India Life, in a separate statement, had said that prima facie principles of natural justice weren’t adhered to. It, further said that Sahara India Life is taking all possible actions as per applicable law to ensure that the best interest of its policyholders is secured.
In its order passed on June 2, Irdai mentioned that the action was warranted to protect the interest of the policyholders of Sahara India Life.
Given the certain serious issues on the financial propriety and governance aspects of the insurer, the authority had appointed an administrator to manage the business of the insurer in 2017, Irdai had said.