Regulatory and Development Authority of India (IRDAI) has directed ICICI Prudential Life Insurance to take over the life insurance business portfolio of Sahara India Life Insurance Company (SILIC) with effect from 31st July 2017.
In terms of Section 52 B (3) of the Insurance Act, 1938, this order is binding on all persons concerned, and shall have effect notwithstanding anything in the memorandum or articles of association of M/s Sahara India Life Insurance Company.
Sahara Group has been reeling under financial troubles ever since its chief Subrata Roy was arrested in 2014 in a case of non-refund ofalmost Rs 20,000 crore to investors. Sahara Mutual Fund’s licence was cancelled by Securities and Exchange Board of India in 2015.
IRDAI had asked Sahara life to stop issuing policies on June 23. Insurance regulator had raised concerns over the management of Sahara India Life Insurance Co, a wholly-owned subsidiary of Subrata Roy-led Sahara Group.