Supreme Court admits IRDA plea against SAT stay on Sahara Insurance transfer order

economictimes.indiatimes.com:

Supreme Court on Monday said it will examine the insurance regulator's appeal challenging the Securities Appellate Tribunal's decision to stay its order directing Sahara India Life Insurance Company to transfer its life insurance business to SBI Life Insurance Company. The bench led by Justice Abhay S Oka while seeking a response from Sahara India Life said, «Some solution has to be found to protect the interest of 3,300 people who have filed their claims.» It also asked Sahara to submit details of the mechanism to find a solution and posted the matter for further hearing on July 10.

Sahara's senior counsel JP Sen told the SC that it had filed a miscellaneous application before the tribunal giving a mechanism for regulating its life insurance business. The matter is listed for August 3.

Solicitor General Tushar Mehta, appearing for the Insurance Regulatory Development Authority of India (IRDAI), argued that the SAT stay may impact servicing of Sahara policyholders as these 3,300 people will get nothing. He also alleged that Sahara had not so far given physical copies of its documents to SBI Life, but only transferred the record electronically without giving a password.

IRDAI had moved the SC against the tribunal's stay, stating that its June 2 order to immediately transfer the life insurance business of the Sahara firm to SBI Life was passed due to the former's rapidly deteriorating financial position. «In this regard, the assets and liabilities qua the policyholders have already been transferred to SBI Life on June 2, 2023, and various steps have been taken by IRDA and SBI Life in furtherance thereof.