- Allegations: Subramanian Swamy accuses Axis Bank of a ₹5,100 Cr scam related to Max Life Insurance shares.
- Axis Bank Response: Denies allegations, cites regulatory approvals, and commits to defending itself.
- Swamy’s Demands: Calls for investigation committee, citing non-transparent transactions and regulatory violations.
- Transaction Details: Axis Bank’s sale to MFSL, acquisition from MFSL allegedly at below-market prices.
- Legal Proceedings: Public Interest Litigation scheduled for further hearing on March 13.
- Market Impact: Axis Bank shares decline 0.66% amid uncertainty and investor concerns.
Unfolding Drama: Axis Bank Shares Drop Amid Allegations :
Axis Bank (NS:AXBK) shares fell sharply after a prominent BJP politician, Subramanian Swamy, filed a PIL in the Delhi High Court, alleging a ₹5,100 crore scam in the sale and purchase of Max Life Insurance shares.
Axis Bank’s Response :
Axis Bank responded quickly, claiming full compliance with regulatory permits for Max Life insurance operations. It vigorously refuted the claims, claiming that the accusations had no substantial influence on operations.
Call for an investigation :
Swamy’s plea seeks a High Court probe into Axis Bank’s suspected fraudulent operations in order to find “undue profits” from Max Life Insurance shares. The case is scheduled for another hearing on March 13.
The Demand for Scrutiny :
Swamy requests an expert group to investigate the problem, with the goal of exposing corruption in private sector banks. He claims Axis Bank made ₹5,100 crore from non-transparent transactions involving Max Life equity shares.
Transactional Details and Allegations :
The petition details transactions in which Axis Bank sold its shareholding to MFSL and Mitsui Sumitomo International in March 2021, followed by allegedly obtaining shares from MFSL at below-market rates in March-April 2021, resulting in unlawful gains.
IRDAI Penalties and Alleged Fraud :
Swamy believes the ₹3 crore penalty imposed by IRDAI on Max Life is insignificant in comparison to the alleged wrongdoing at Axis Bank.
Judicial intervention sought :
Swamy requests the court to convene a Committee of Experts to conduct an investigation and develop rules to prevent future misconduct, addressing the industry’s widespread malfeasance.
Market Impact :
Axis Bank’s shares fell 0.66% to ₹1,065.15 at the start of Friday’s trading session, indicating investor worry about the claims.
In conclusion
Axis Bank is facing a tumultuous moment as suspicions of financial malfeasance loom large. Swamy’s charges have sparked a market reaction, and as legal processes continue, stakeholders are closely monitoring the impact on the bank’s reputation and stability.