Axis Bank’s appeal at the HC claims that it gained unjustified profits

Dr. Subramanian Swamy, a BJP politician and former member of parliament, has filed a writ suit in the Delhi High Court, accusing Axis Bank of perpetrating a Rs. 5,100 crore fraud by obtaining unjustified profits via transactions in shares of Max Life Insurance.

In his petition, Swamy claims that Max Life and Max Financial Services violated the regulations of the Insurance Regulatory and Development Authority of India (IRDAI) by enabling the bank and its group companies, Axis Securities and Axis Capital, to make unjustified profits or gains from the sale or purchase of equity shares in a non-transparent manner.

In accordance with the petition, Axis Bank paid 736 crore for a 12.002% interest in Maxlife, which is obviously less than the fair market value, at `31.51/~32.12 a share. According to the suit, Axis Bank profited greatly from the transactions by utilizing its dual role as Max Life’s corporate agent and shareholder.

The case was scheduled to be heard by Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora on Thursday. On behalf of Dr. Swamy, senior advocate Rajshekhar Rao made an appearance.

Axis Bank said in an exchange document that Dr. Swamy has filed a public interest writ suit before the HC against the Union of India, Axis Bank, Axis Securities, Axis Capital, and others in relation to the sale or acquisition of shares of Max Life Insurance.

“Axis Bank has all the regulatory clearances required for these transactions. Axis Bank said in the regulatory filing, “We will also take the necessary actions to defend Axis Bank against any unfounded allegations.”