IRDAI moves SC against SAT stay on Sahara Insurance order

IRDAImoved the Supreme Court, challenging the Securities Appellate Tribunal’s decision to stay its order directing Sahara India Life Insurance Company to transfer its life insurance business to SBI Life Insurance Company.

Seeking urgent hearing in the matter, Solicitor General Tushar Mehta, appearing for the IRDAI, 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 thelife 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”.