Axis Bank Limited is currently facing scrutiny following a Public Interest Litigation (PIL) filed by senior BJP leader Subramanian Swamy in the Delhi High Court. The PIL alleges a significant fraud amounting to ₹4,000 crores related to the sale and purchase of shares of Max Life Insurance Company Limited.
Clarifications by Axis Bank
In response to the allegations raised by Swamy, Axis Bank has issued clarifications emphasizing that they have secured all necessary regulatory approvals for the transactions concerning the sale/purchase of shares of Max Life Insurance.
The bank asserts its commitment to defending against any unfounded accusations, stating that there is no substantial impact on the bank due to the allegations.
Swamy’s Plea
Subramanian Swamy has urged the High Court to initiate an investigation into the alleged fraudulent activities of Axis Bank concerning the sale and purchase of shares in Max Life Insurance.
The bench comprising Acting Chief Justice Manmohan and Justice Manmeet PS Arora has listed the PIL for further hearing on March 13, following Axis Bank’s senior counsel’s statement that they had not received a copy of the plea.
Allegations
Swamy, in his petition, calls for the establishment of a committee of experts to investigate the matter, citing the need to expose the “rot” in private sector banks. He alleges that Axis Bank unlawfully gained ₹4,000 crores through non-transparent and regulatory violation-ridden transactions involving Max Life equity shares.
The petition details the transactions, highlighting Axis Bank’s initial sale of its 0.998% stake in Max Life to MFSL and Mitsui Sumitomo International in March 2021.
However, within a short period, Axis Bank and its group entities acquired 12.002% shares from MFSL at a price range of ₹31.51 to ₹32.12 per share in March-April 2021. Swamy claims that this acquisition was below the fair market value, resulting in an illicit gain of approximately ₹4,000 crores.
Judicial Intervention
Swamy requests the court to intervene by directing an investigation through a Committee of Experts and formulating comprehensive guidelines to prevent such acts in the future and regulate transactions between banks and financial/insurance institutions.
The petition underscores the urgency of addressing rampant corruption in the banking and insurance industry, criticizing the executive’s alleged reluctance to take necessary actions to ensure a corruption-free society.
