Axis Bank shares fell more than 2 percent in afternoon trade on February 15 after BJP leader Subramanian Swamy moved the Delhi High Court, alleging the private bank's involvement in an Rs 5,100-crore scam, a report said.
In an post on X platform, Bar and Bench website said Swamy alleged that Axis Bank made undue gains by way of transactions in shares of Max Life Insurance.
Swamy moved the court seeking investigation by a committee of experts into the transaction.
"There was a blatant fraud in Max Life Insurance and Max Financial Services allowing their shareholder Axis Bank and its group companies Axis Securities and Axis Capital to make undue profits or gains from the purchase and sale of equity shares of Max Life in non-transparent manner thereby, violating the mandatory directions of the Insurance Regulatory and Development Authority of India," he has said.
Moneycontrol couldn't verify the report independently.
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Swamy contented that Axis Bank group companies bought 12.02 percent shareholding in Maxlife Insurance for Rs 31.51- Rs 32.12 a share at total consideration of Rs 736 crores, which is below the fair market value.
It further said that though the IRDAI imposed a penalty of Rs 3 crore on Max Life Insurance for misrepresentation but it was negligible compared to the size of the "fraud".
A bench of acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora heard the matter briefly and adjourned the case to March after senior advocate Mukul Rohatgi, appearing for Axis Bank, said he had not been served a copy of the petition. A mail was sent to him but the petition attached could not be opened, he said.
Axis Bank shares were trading 2.17 percent lower at Rs 1073.1 at 2.44 pm on the National Stock Exchange.
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