The Securities Court and Court of Appeals (SAT) has ordered the status quo for a week in the Insurance Regulator Directive to transfer the obligations of the holders of Sahara life insurance policies.
A senior IRDAI official said Sahara life had serious “governance issues” and will give its response in a week. The official added that the company will be transferred after one week. The life of the Sahara did not immediately respond to a letter sent by Moneycontrol.
Friday IRDAI had directed ICICI Prudential Life Insurance to support the life insurance portfolio of the Sahara Life Insurance as of July 31. A sum of Rs 78 million rupees has already been removed from the name of security deposits in Sahara life insurance, according to a report by the director appointed by IRDAI.
RK Sharma, who was appointed director in June to manage the affairs of the insurer, said that the company’s promoters are no longer “suitability”. “The company survives mainly from the release of reserves, but the situation can not last long because the company’s new premium has declined dramatically,” Sharma said in the report.
In a statement released Sunday, Sahara Vida said that, first, IRDAI has not authorized the extension of the branch and now IRDAI claims that companies are not increasing. In addition, the insurer said that the IRDAI appointed an administrator for the most known reasons and that the administrator has secretly submitted a report to the IRDAI to transfer the activity of Sahara life to any other entity.
“Even a copy of the administrator’s report has not been provided to the Sahara life, nor have they had the opportunity to hear a report such as before moving the transfer order of business to a third party.” The company has never acted in a way detrimental to The interests of the insured. The Sahara continue their action against an IRDAI such an approach before the Court of justice, “according to the insurer.
In June, IRDAI had appointed an administrator to look into the affairs of the insurer and, later, had instructed not to write new business. On the basis of certain criteria, some six insurers approached to measure their interest in the purchase of the insured’s liabilities. Among them, ICICI Prudential Life Insurance has given its favorable agreement.
The Sahara group has faced financial problems since its boss Subrata Roy was arrested in 2014 in the case of dupage investors. The Sahara as the investment of an investment fund was canceled by the Stock Exchange Board of India the following year.
On the issue of Rs 78 crore being diverted, Sahara Vida said it was bad concluded. “In fact, this amount was kept as a security deposit with an entity, the Sahara India which provided furnished and computerized premises in about 150 places. Beneficial for the Sahara life.While IRDAI concluded so recklessly.the amount of the deposit is fully refundable from the Sahara life, “he said.
Friday SAT dismissed the Sahara exception against an order from the Indian Stock Exchange Board (SEBI) canceling its investment funds from the license. However, the company had six weeks to go to the Supreme Court. SEBI had said that the mutual fund of the Sahara no longer met the criteria of “appropriate and appropriate” also mentioned by an IRDAI point in its order.