Statement from Sahara on SAT Proceedings on IRDA order

In a significant judgement, Securities Appellate Tribunal, (SAT), today, quashed the order dated July 28, 2017 passed by Insurance Regulatory Development Authority transferring the Life Insurance business of Sahara Life Insurance to an outside insurer, namely – ICICI Prudential Life Insurance Co. Ltd.
SAT while allowing Sahara's appeal, expressed serious concern over the manner Insurance Authority acted in the matter against Sahara Life and considered the said action of Insurance Authority highly fatal and irregular so as to vitiate the very appointment of the Administrator and all his further actions, in the facts and circumstances of the case. SAT opined that the report of the Administrator should have at least been supplied to Sahara Life before passing the impugned order.
Sahara Life Insurance got a major respite and its stand was vindicated by SAT, when it remanded and restored the whole matter to the file of the IRDA with a direction to proceed from the stage of seeking a representation/response from Sahara Life on the Administrator’s report in question as well as providing opportunity of being heard to Sahara Life and its stake holders, in consonance with the principles of natural justice and directing to complete the hearing as per law within three monthsfrom the date of receipt of Sahara ’s reply to the Administrator’s report in question as per law and after giving opportunity of hearing to them.

It was contended by Sahara Life in the said appeal that the Insurance Authority had illegally and with malafide intent transferred its business to an outside insurer, namely – ICICI Prudential Life Insurance Co. Ltd. without affording any opportunity of hearing to it and the Administrator appointed by the Insurance Authority was acting in concert for the benefit of a third party, who recommended the other options but unilaterally recommended for transfer of business.