Shares of Axis Bank experienced a decline of more than 2 percent on February 15, following allegations by BJP leader Subramanian Swamy regarding the bank’s involvement in a purported scam worth Rs 5,100 crore. Swamy accused the private bank of unlawfully profiting from transactions related to shares of Max Life Insurance. The matter was brought before the Delhi High Court, with Swamy seeking an investigation by a committee of experts into the transactions.
He argued that Axis Bank and its group companies had gained unjustly from the purchase and sale of Max Life shares, in violation of regulations set by the Insurance Regulatory and Development Authority of India (IRDAI).
Despite the IRDAI imposing a penalty of Rs 3 crore on Max Life Insurance for misrepresentation, Swamy contended that the penalty was insignificant compared to the scale of the alleged fraud. The case was adjourned to March after Axis Bank’s legal representative informed the court of not receiving a copy of the petition. The bank refuted the allegations, stating that all necessary regulatory approvals had been obtained for the transactions related to the deal with Max Life.
