BJP Leader Subramanian Swamy Files PIL Alleging Rs 5,100 Crore Scam Involving Axis Bank and Max Life Insurance

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In a significant legal development, Bharatiya Janata Party (BJP) leader Subramanian Swamy has filed a Public Interest Litigation (PIL) in the Delhi High Court, accusing Axis Bank and its group companies of engaging in illegal practices to manipulate the share prices of Max Life Insurance.

Swamy's PIL alleges that both Axis Bank and Max Life Insurance violated the directives of the Insurance Regulatory and Development Authority of India (IRDAI), the regulatory body overseeing the insurance sector. The BJP leader contends that non-transparent transactions between the two entities resulted in a substantial scam amounting to nearly Rs 5,100 crore.

Seeking swift action, Swamy has called for an investigation by a committee of experts appointed by the court. Additionally, he has urged the court to establish guidelines to prevent similar fraudulent activities in the future.

The case, which was briefly heard by a bench comprising Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora on Thursday, has been adjourned to March 13 for further proceedings.

The news of the PIL has already impacted the financial market, causing a 2% drop in the shares of Axis Bank and Max Financial on Thursday. As the legal battle unfolds, it remains to be seen how this development will shape the future of these financial entities and the broader regulatory landscape in the insurance sector.