NEW DELHI: BJP leader Subramanian Swamy on Thursday approached the Delhi High Court alleging a scam of Rs 5100 crores by Axis Bank which benefitted “undue gains” through transactions in shares of Max Life Insurance, seeking a probe into the matter. As Swamy’s public interest litigation (PIL) came before the bench headed by Acting Chief Justice Manmohan, Axis Bank’s counsel Senior Advocate Mukul Rohatgi said, an advance copy of the petition was not served to the bank. Following the submission, the bench also comprising Justice Manmeet Pritam Singh Arora asked Swamy’s counsel Senior Advocate Rajshekhar Rao to provide a copy of the plea to Rohatgi while posting the case on March 13. Swamy’s PIL petition alleged that Axis Bank made undue profits totalling Rs 4,000 crore from the sale and purchase of equity shares of Max Life in a non-transparent manner and in violation of the applicable regulations. Axis Bank to pick about 30 per cent stake in Max Life Insurance for Rs 1,600 crore”Axis Bank sold its stake of 0.998% shares of Max Life in March 2021 to MFSL (Max Financial Services Ltd) & Mitsui Sumitomo International at INR 166/- per share. Subsequently, in a very short span of time i.e., in March-April 2021 itself, Axis Bank Limited and its group entities acquired 12.002% shares from MFSL at price range of INR 31.51 – INR 32.12 per share,” the plea read. “12.002 % of the shareholding in Max Life is bought by the Axis Bank group companies at Rs. 31.51 / Rs. 32.12 per share at total consideration of 736 Crores, which is evidently below the fair market value. On simple calculation, resulting in undue profits/gains from the purchase on the sale of equity shares of Max Life in non-transparent manner, Axis Bank has unlawfully gained approx. Rs. 4000 Crores,” it further stated. After RBI disallows direct stake buy, Axis Bank rejigs Max Life deal”It is, therefore, prayed that this Hon’ble Court may intervene by directing investigation 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 petition said. It said “rampant corruption” in the banking and insurance industry and the executive’s “manifest unwillingness” to take requisite action gravely impairs the right of the people to live in a corruption-free society. The former BJP MP has sought a direction from the court for constituting a committee of experts to investigate the matter, asserting that the “rot” in private sector banks should be brought to light.(With inputs from PTI)
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