Siphoned off policyholder funds: Supreme Court on Sahara India Life
Supreme Court on Monday flayed the Sahara India Life Insurance Co for failing to recover Rs 78.15 crore from its major shareholder Sahara India Financial Corporation, saying it is a «gross defaulter» and has «siphoned off» its policyholders' money. The observations came from a bench led by Justice Abhay S Oka while hearing the insurance regulator's appeal challenging the Securities Appellate Tribunal's decision to stay its order directing Sahara India Life Insurance Co to transfer its life insurance business to SBI Life Insurance Co.
When senior counsel Kapil Sibal, appearing for the Sahara company, argued that Rs 1,300 crore has been handed over to the insurance regulator and the company cannot service any policyholder now, the bench said «You have been given a long rope. Bring back Rs 78 crore by Friday.
Repeated opportunities were given to you. You don't want to bring back money and want policyholders to suffer… you can't take this court for a ride».
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