The apex court said, “some solution has to be found to protect the interest of 3300 people who have filed their claims.”
The next hearing on case is set to take place on July 10, 2023.
Solicitor General Tushar Mehta, appearing for the Insurance Regulatory Development Authority of India (IRDAI), had told a vacation bench led by Justice Surya Kant that the SAT stay may impact servicing of Sahara policyholders.
The judge, however, said there was no urgency and directed the matter to be heard on its scheduled date on July 3.
The insurance regulator said its June 2 order to immediately transfer the life insurance business of the Sahara firm to SBI Life was passed due to the former’s “rapidly deteriorating financial position, and as the prudential regulator being seized of the company’s state of affairs, for protecting and promoting the interests of the erstwhile holders of life insurance policies issued by Sahara by transferring its life insurance business to another fit and proper insurer with sound financials”.”In this regard, the assets and liabilities qua the policyholders have already been transferred to SBI Life on June 2, 2023, and various steps have been taken by IRDA and SBI Life in furtherance thereof. Any stay of the June 2, 2023, order may preclude SBI Life from effectively servicing the accounts of the policyholders,” the appeal stated.The insurance regulator argued it had a strong prima face case for setting aside SAT’s “erroneous” order and the stay is also needed to “ring-fence the assets/investments” of the Sahara firm from “possible diversion or siphoning off”.
(With inputs from Indu Bhan, ET Bureau)