In a recent move by the Insurance Regulatory and Development Authority of India (IRDAI), Sahara India Life Insurance Company Ltd. is being transferred to SBI Life Insurance Company Ltd. due to several reasons. The company failed to recover Rs.70.15 crore that it had diverted to its promoter company, did not submit a complete business plan, did not reconcile two bank accounts, did not strengthen its internal controls, and had a worsening financial condition. The IRDAI had earlier ordered Sahara India Life to recover the diverted funds from its major shareholder, but only Rs.8 crore was recovered. The life insurer also failed to find new promoters, as the existing ones no longer came under the ‘fit and proper’ definition. Meanwhile, Sahara India Life’s business has been showing a run-off trend, posting post-tax losses since 2019-2020. In order to protect the policyholders and the company’s failing financial situation, its business is being transferred to SBI Life. SBI Life will take over Sahara India Life’s assets and liabilities. Sahara Group has yet to comment on the IRDAI’s charges, citing an ongoing case with the Securities Appellate Tribunal. However, Sahara Group’s earlier transfer to ICICI Prudential Life Insurance in 2017 was later quashed by the Securities Appellate Tribunal.
Transfer of Sahara India Life to SBI Life due to Funds Misuse and Non-Compliance
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