Former Rajya Sabha MP and BJP leader Subramanian Swamy has taken a significant step by moving the Delhi High Court, alleging a scam of nearly ₹5100 crore involving Axis Bank, as reported by Bar and Bench. Swamy has accused the private lender of making undue gains through transactions in shares of Max Life Insurance, prompting him to seek a thorough investigation into the matter.
In his plea before the court, Swamy has laid out several allegations against Axis Bank and its associated entities. He has called for the formation of a committee consisting of experts to investigate the fraudulent acts he claims to have uncovered. The alleged scam revolves around transactions involving shares of Max Life Insurance, with Swamy contending that Axis Bank and its group companies, namely Axis Securities Ltd and Axis Capital Ltd, made significant profits in a non-transparent manner.
According to Swamy’s plea, the actions of Max Life Insurance Co. Ltd and Max Financial Services Ltd, in conjunction with Axis Bank Ltd, constitute a misuse of power and a breach of regulatory requirements. Swamy asserts that there was a deliberate attempt to manipulate the system to enable Axis Bank and its affiliates to reap unjustified profits from the purchase and sale of equity shares of Max Life.
The plea further alleges that Axis Bank, leveraging its dual role as a shareholder and corporate agent of Max Life, engaged in activities that violated regulatory norms and led to illegal profiteering. Swamy contends that despite previous penalties imposed on Axis Bank for similar violations, the institution continued to engage in questionable practices, necessitating a thorough investigation into its recent transactions.
Swamy’s plea seeks not only an investigation into the alleged scam but also the formulation of comprehensive guidelines to prevent similar incidents in the future. He emphasizes the need for regulatory authorities to take decisive action against instances of corruption and malpractice in the banking and insurance sectors to uphold the rule of law and protect the interests of consumers.
The plea underscores the importance of transparency and accountability in the financial industry, particularly in dealings involving significant sums of money. Swamy’s decision to approach the Delhi High Court reflects his commitment to combating corruption and ensuring that those responsible for fraudulent activities are held accountable.
In response to Swamy’s plea, the court has directed him to serve copies of the petition to all respondents and has scheduled the matter for further hearing on March 13, 2024. The involvement of senior advocates on both sides indicates the gravity of the allegations and the legal complexities involved in adjudicating the case.
Overall, Swamy’s move to seek judicial intervention in the alleged scam involving Axis Bank and Max Life Insurance underscores the importance of regulatory oversight and enforcement in safeguarding the integrity of the financial system and protecting the interests of stakeholders.