Delhi High Court Dismisses Subramanian Swamy’s PIL Against SEBI Chief; Orders Expedited Probe into Axis Max Life Deal
(Judicial Quest News Network)
New Delhi 19, August,2024
In a recent ruling, the Delhi High Court addressed a Public Interest Litigation (PIL) filed by former Union Minister Subramanian Swamy, which alleged significant financial improprieties involving Axis Bank and Max Life Insurance. The court’s decision was delivered by a division bench comprising Acting Chief Justice Manmohan and Justice Tushar Rao Gedela.
Swamy’s PIL accused Axis Bank and its affiliates of profiting unduly through non-transparent transactions involving shares of Max Life Insurance, suggesting that these transactions violated regulations set by the Insurance Regulatory and Development Authority of India (IRDAI). Swamy claimed that the alleged fraud had caused considerable financial losses, amounting to nearly ₹5,100 crore.
Swamy had specifically targeted the Chief of the Securities and Exchange Board of India (SEBI), Medhavi Puri Bhuj, alleging that her prior professional connections with Max Group compromised SEBI’s impartiality in investigating the case. However, the court noted that Bhuj was not a party to Swamy’s PIL and observed that personal allegations alone were insufficient to influence SEBI’s regulatory duties.
The court emphasized that even if the SEBI chairperson had past professional ties with Max Group, it did not absolve the regulator from its duty to address the matter impartially. Swamy’s claims about SEBI’s delay in acting on his allegations were deemed unsubstantiated, as he had not formally amended his petition to include Bhuj as a party in the case.
The bench highlighted that the regulators, namely SEBI and IRDAI, were already examining the issues raised in Swamy’s plea. Therefore, the court disposed of the PIL with a directive for these regulatory bodies to expedite their investigations and adhere strictly to legal standards. If further action was deemed necessary, it was to be taken in accordance with the law.
Senior Advocate Rajshekhar Rao, along with a team of advocates including Akanksha Kaul, Mehrunisa, Anand Jaitley Areeb, Satya Sabharwal, Aman Sahani, Ajay Sabharwal, Tanya Arora, and Aakash Saksena, represented Swamy in the case. The Union of India was represented by Central Government Standing Counsel (CGSC) Kirtiman Sing, alongside advocates Waiz Ali Noor, Varun Pratap Singh, Varun Rajawat, Maulik Khurana, and Karthika Baijal.
SEBI was represented by Senior Advocate Pratap Venugopal and Advocate Ashish Agarwal, while Axis Bank’s legal team included Senior Advocates Mukul Rohatgi and Rajiv Nair, as well as Advocates Raunak Dhillon, Madhavi Khanna, and Niharika Shukla. Advocate Rahul Kumar represented Axis Capital, with support from Advocates Ramesh Babu, Manisha Singh, Nisha Sharma, Jagriti Bharati, Rohan Shrivastav, and Tanya Choudhary.
The court’s ruling underscores its reliance on regulatory processes to address allegations of financial misconduct and reinforces the importance of impartial investigation by the relevant authorities.
