Money & Banking

IRDAI takes over management of Sahara Life Insurance

G Naga Sridhar Hyderabad | Updated on January 12, 2018 Published on June 12, 2017

TS Vijayan, Chairman, IRDAI

Appoints administrator; insurer’s actions likely to be prejudicial to the interests of policy-holders, says regulator

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.

Roy has also been arrested subsequently and the case is in progress in the apex court.

Published on June 12, 2017

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
null
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.