Delhi HC directs RBI, Sebi to expedite probe into alleged "fraudulent acts" by Max Life, Max Finserv.

The Delhi High Court has directed the Reserve Bank of India and the Securities and Exchange Board of India to speed up their investigations into alleged fraudulent acts by Max Life Insurance and Max Financial Services.

Former Rajya Sabha member Subramanian Swamy petitioned to form a committee to look into the alleged acts, but the court denied the request.

Swamy also mentioned exploring the possibility of involving the criminal court and invoking the Prevention of Money Laundering Act, of 2002, to proceed further in the matter.

Axis Bank, representing senior counsel Mukul Rohatgi, opposed Swamy's Public Interest Litigation (PIL), stating that it fell under the realm of a commercial transaction between private entities and was not maintainable.

The Insurance Regulatory and Development Authority of India (IRDA) revealed that it had imposed penalties of Rs 2 crore and Rs 3 crore on Axis Bank and Max Life, respectively, and forwarded the details to the RBI and SEBI for necessary action.

The Securities and Exchange Board of India (SEBI) counsel informed the court that they had initiated preliminary examinations, and investigations into the case are at an advanced stage.

Swamy claimed that Max Life Insurance and Max Financial Services reportedly allowed undue profits from the purchase and sale of equity shares of Max Life by Axis Bank and its group companies, violating IRDA's mandatory directions.

Swamy's petition stated that Axis Bank has engaged in illegal profiteering in the past and that the present transaction requires scrutiny through suspicion.