NEW DELHI: Former Member of Parliament and BJP leader Dr Subramanian Swamy has filed a writ petition in the Delhi High Court alleging Axis Bank committing a scam of Rs 5,100 crore by making undue gains by way of transactions in shares of Max Life Insurance.
Swamy in his petition has alleged Max Life and Max Financial Services allowed the bank and its group companies (Axis Securities and Axis Capital) to make undue profits/gains from sale/purchase of equity shares in a non-transparent manner in violation of the Insurance Regulatory and Development Authority of India (IRDAI) rules.
As per the petition, Axis Bank bought 12.002% stake in Maxlife at `31.51/`32.12 per share at a consideration of 736 crore, which is evidently below the fair market value. As per the petition, Axis Bank using its dual relationship as shareholder and corporate agent of Max Life gained substantially from the transactions.
The petition was listed on Thursday before the Bench of Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora. Senior Advocate Rajshekhar Rao appeared on behalf of Dr Swamy.
In an exchange filing, Axis Bank said a public interest writ petition has been filed by Dr Swamy against Union of India, Axis Bank, Axis Securities, Axis Capital and others before the HC in connection with the sale/purchase of shares of Max Life Insurance.
“Axis Bank has obtained all necessary regulatory approvals in connection with these transactions. We will also take required steps to defend Axis Bank against any unfounded allegations,” the bank said in the regulatory filing.