BJP leader Subramanian Swamy alleges scam in Axis-Max Life deals

livemint.com:

MUMBAI : Senior BJP leader Subramanian Swamy on Thursday moved the Delhi High Court alleging a scam of nearly ₹5,100 crore in the way Axis Bank sold and purchased shares of insurer Max Life Insurance Company. Max Life is a joint venture between Max Financial Services and private lender Axis Bank. On 6 February, the Insurance Regulatory and Development Authority of India (Irdai) approved Axis Bank’s proposal to purchase another 7% in Max Life for ₹1,612 crore.

After this, the Axis group entities will collectively own 19.02% of the insurer, up from less than 13% currently. The public interest litigation alleged that ₹5,100 crore was the total profit made by Axis Bank through these transactions between February 2016 and April 2021. Swamy alleged that, for instance, Axis Bank sold its stake of 0.998% in Max Life in March 2021 to Max Financial Services Ltd and Mitsui Sumitomo International at ₹166 per share.

Then, between March and April 2021, Axis Bank and its group entities acquired a 12.002% stake from Max Financial Services at ₹31.51-32.12 per share. “Meaning, thereby, Axis Bank has gained substantially while selling shares as the selling price has been exponentially more than the purchasing price," the petition alleged, demanding a probe by an expert panel. Axis Bank termed the allegations unfounded and without any merit.

“We have not yet been served with a copy of the writ petition today. The bank has obtained necessary regulatory approvals in connection with the sale / purchase of shares of Max Life Insurance Company Limited. We will take necessary steps to vigorously defend the bank against the unfounded allegations made which are totally devoid of any merit," it said in a statement.