Subramanian Swamy alleges multi-crore Max Life-Axis Bank scam

BJP leader Subramanian Swamy has filed a PIL before the Delhi High Court seeking a comprehensive probe into the alleged fraud in Axis Bank involving undue profits through the sale and purchase of shares, violating regulatory guidelines and causing financial harm.

The PIL was heard by the division bench of acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora. Senior advocate Rajshekhar Rao represented Swamy, while Mukul Rohatgi appeared on behalf of Axis Bank.

Rohatgi said that he had not received an advance copy of the petition, prompting the court to adjourn the case to March 13 after Swamy's counsel provided a copy to Rohatgi.

The PIL accuses Axis Bank of making "undue gains" through transactions in the shares of Max Life Insurance.

Swamy has sought the court's directions to form a committee consisting of experts to investigate the 'fraudulent' acts of Max Life and MFSL in allowing their shareholder (Axis Bank Ltd.) and its group companies -- Axis Securities Ltd. and Axis Capital Ltd -- to make undue profits/gains from the purchase and sale of equity shares of Max Life in a non-transparent manner.

The PIL says that the profits were made by violating the directions of the Insurance Regulatory and Development Authority of India (IRDAI).

Swamy has called it an issue of national importance concerning the financial security of innumerable citizens of the country. He claimed that Axis Bank gained unlawfully from purchasing Max Life shares below fair market value, resulting in approximately Rs 4,000 crore in profits.

Swamy has criticised the penalty imposed by IRDAI on Max Life as negligible compared to the total fraud alleged in the case.