Axis Bank shares: According to Subramanian Swamy, Axis Bank made illegal gains through trading Max Life Insurance shares.
Axis Bank shares declined over 2 percent during afternoon trading on February 15 following reports of BJP leader Subramanian Swamy moving the Delhi High Court. Swamy alleged the private bank’s involvement in a Rs 5,100-crore scam.
In a post on the X platform, the Bar and Bench website reported that Swamy alleged Axis Bank made unfair profits through transactions involving shares of Max Life Insurance.
Swamy petitioned the court to initiate an investigation by a panel of experts into the transaction.
Swamy has asserted that there was a clear case of fraud in Max Life Insurance and Max Financial Services, where their shareholder Axis Bank and its affiliated entities, Axis Securities and Axis Capital, were allowed to unfairly profit from the trading of Max Life equity shares in a non-transparent manner. This, he claims, violates the mandatory directives of the Insurance Regulatory and Development Authority of India.
Swamy argued that Axis Bank group companies acquired a 12.02 percent stake in Maxlife Insurance for Rs 31.51- Rs 32.12 per share, totaling Rs 736 crores, which he believes is below the fair market value.
It went on to say that even though Max Life Insurance was fined Rs 3 crore by the IRDAI for misrepresentation, the amount of the “fraud” was far larger.
Senior attorney Mukul Rohatgi, appearing on behalf of Axis Bank, said he had not received a copy of the petition. This led to a brief hearing of the case by a bench consisting of acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora, who postponed the decision till March. He claimed to have received a letter, but the petition within could not be opened.
