The Insurance Regulatory and Development Authority of India (IRDAI) has taken over the administration of Sahara India Life Insurance, a first of its kind move in the insurance sector.It has named RK Sharma, General Manager, IRDAI, as administrator to manage the affairs of the insurer.
“The IRDAI has reasons to believe that Sahara India Life Insurance Co is acting in a manner likely to be prejudicial to the interests of holders of life insurance policies,” TS Vijayan, Chairman, IRDAI, said in an order issued here on Monday. The administrator will act as per the powers and duties and applicable provisions under the Insurance Act, 1938 and manage the business with the greatest economy, compatible with efficiency and regular reporting to the regulator, the order states.
The administrator will also file a report to the authority as regards the insurer, stating the most advantageous course of action in the general interest of the holders of life insurance policies as per Section 52B of the Insurance Act, 1938 as soon as possible.
The current board of Sahara India Life is headed by Chairman OP Srivastava. Sanjay Agarwal is whole-time director and CEO.
In a public notice addressing the policyholders of the company, the regulator said: “It will be the endeavour of the administrator to ensure the servicing of the policy-holders and to manage the affairs of the insurer in as smooth a manner as feasible.”
Lucknow-based Sahara India Life Insurance was the first wholly Indian owned life insurance company in the private sector which launched its operations in 2004 with an initial paid-up capital of ₹157 crore.
It is promoted by Sahara Pariwar Group headed by Subrata Roy.
In the long-running SEBI-Sahara case, the Supreme Court in August 2012 had ordered the group to deposit with the regulator over ₹24,000 crore collected from nearly three crore investors through issuance of bonds.