Subramanian Swamy's PIL for probe against Axis Bank not maintainable, HC told
Axis Bank on Wednesday opposed before the Delhi High Court BJP leader Subramanian Swamy's public interest litigation (PIL) seeking a probe into an alleged fraud committed by the bank to make «undue profits» through sale and purchase of shares in Max Life Insurance. Senior counsel for Axis Bank as well as Max Life told a bench headed by Acting Chief Justice Manmohan that the PIL by the former BJP MP was not maintainable as the issue squarely fell in the realm of a commercial transaction between private entities.
Senior advocate Mukul Rohatgi, appearing for Axis Bank and its related companies, argued that the PIL does not state the «class» of individuals for whose benefit it has been filed when the aggrieved shareholders, if any, were capable of coming to court.
Senior advocate Neeraj Kishan Kaul, who appeared for Max companies, asserted that the transaction, which was a purely commercial arrangement, has been looked into by the sector regulator.
Counsel for insurance sector regulator IRDAI said «possible penalty» has already been imposed by it in relation to the transaction in question.
Senior advocate Rajsekhar Rao, on behalf of the petitioner, stated that the issue «warrants a larger look».
The bench, also comprising Justice Manmeet P S Arora, listed the matter for further hearing on April 3.
Swamy, a former BJP MP, in his PIL has sought a direction from the court for constituting a committee of experts to investigate the matter, asserting that the «rot» in private sector banks should be brought to light.
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