SC Admits IRDA’s Appeal Against SAT Stay on Sahara Insurance Order

The Supreme Court has accepted the appeal filed by the Insurance Regulatory Development Authority of India (IRDAI) against the Securities Appellate Tribunal’s (SAT) decision to stay the IRDA’s order directing Sahara India Life Insurance Company to transfer its life insurance business to SBI Life Insurance Company. The court emphasized the need to find a solution to safeguard the interests of the 3,300 individuals who have filed claims. The next hearing is scheduled for July 10, 2023. IRDAI expressed concerns about the impact of the SAT stay on servicing Sahara policyholders, but the court deemed the matter non-urgent and deferred it to the scheduled date. IRDAI justified its order to transfer the business based on Sahara’s deteriorating financial position and the aim of protecting policyholders’ interests. The appeal emphasized that the assets and liabilities related to policyholders have already been transferred to SBI Life, and any stay could hinder effective servicing of policyholder accounts. IRDAI contended that the SAT’s order was erroneous and sought a stay to prevent the potential diversion or siphoning off of Sahara’s assets and investments.

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