A two-judge bench of the apex court asked the SAT to decide the case afresh on August 3 observing that the appellate tribunal passed the stay order without providing any valid reason
New Delhi:
In its third hearing, the Abhay S Oka Supreme Court on Monday overturned the stay issued by Mumbai based Securities Appellate Tribunal (SAT) on the insurance regulator’s IRDAI’s order to transfer the business of Sahara India Life Insurance Policy to SBI Life Insurance Company Limited.
A two-judge bench of the apex court a Bench led by Justice Abhay S Oka asked the SAT to decide the case afresh on August 3 with the observation that the appellate tribunal passed the stay order without providing any valid reasons.
IRDAI had had moved the SC against the tribunal’s stay, stating that its June 2 order to immediately transfer the life insurance business of the Sahara firm to SBI Life was passed due to the former’s “rapidly deteriorating financial position, and the vacation of the stay was required to “ring-fence the assets/investments” of the Sahara firm from “possible diversion or siphoning off”.
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.
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.
Sahara India Life Insurance was granted a Certificate of Registration in 2004 to transact the business of life insurance.