SAT stays IRDAI order on Sahara Life for a week

MUMBAI: The Securities Appellate Tribunal today directed status quo in Sahara Life versus Irda matter, which would mean that Sahara Life cannot do any new business but service existing policyholders for a week till the final hearing.

“…the respondent is directed to maintain status quo as regards the implementation of the impugned order dated July 28, 2017,” said a two-member bench of SAT, comprising Justices C K G Nair and Jog Singh in the matter.

In addition to maintaining status quo, they directed Sahara Life to cooperate with the administrator in the management of the affairs of the company.

SAT has posted the matter for final hearing on August 7, "in view of the urgency of the matter".

Last Friday, the insurance regulator had directed ICICI Prudential Life to take over assets and liabilities of policyholders of Sahara Life from July 31.

Sahara group had approached SAT against IRDAI order, directing transfer of its life insurance business to ICICI Prudential. Sahara had alleged that the regulator has "wrongly concluded" that the promoter was no more 'fit and proper' and a sum of Rs 78 crore was siphoned of.