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Setback for SAT, SC expunged its remarks against retired IRDAI member

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In a setback for the Securities Appellate Tribunal (SAT), the Supreme Court has expunged the former’s uncalled remarks against former Member (Non-Life), Insurance Regulatory and Development Authority of India (IRDAI) P.J. Joseph.

The Supreme Court in its recent order on an appeal filed by IRDAI against Atkins Special Risks Ltd and others said: “Having heard learned counsel for the parties and on perusal of record, we are of the opinion that the remarks made by the Tribunal against Mr. P.J. Joseph in paragraphs 8 and 9 of the impugned order dated March 16, 2018 as well as the comments in paragraph 1 of the said order were uncalled for and deserve to be set aside.”

“I am happy that the uncalled remarks by SAT in its order has been expunged,” Joseph told IANS.

The SAT on March 16, 2018 setting aside an IRDAI order had said: “We fail to understand as to how Member (non-life) could make such false statement in the impugned order. In our opinion, the impugned order passed by P.J. Joseph (non-life) virtually amounts to aiding and abetting corruption in the insurance business by the regulator which cannot be tolerated.”

The SAT had directed the insurance regulator to entrust the matter to a competent officer other than Joseph for fresh orders on Atkins complaint on merits.

The SAT’s remarks were questioned by legal eagles then.

“The stinging remarks against the Member (Non-Life) by name, with due respect to the SAT, are quite unfortunate and seem to be crossing swords with the repeated and well advised principle of ‘judicial restraint’ by the Supreme Court of India,” D. Varadarajan, a Supreme Court advocate specialising in company/competition/insurance laws, had told IANS.

Going by an SAT order dated March 16, the concerned IRDAI official was not even arraigned as a party, Varadarajan added.

The IRDAI on January 9, 2018, disposed off the complaint by London-based reinsurance broker Atkins Special Risks Ltd against rival Marsh India Insurance Brokers Pvt Ltd of poaching its reinsurance business offering unlawful payment to Jagdish Pershad Gupta, Chairman, Jagson International Ltd.

Atkins’ complaint was that between 2002 to 2012 it provided international reinsurance cover to Jagson. From 2010 onwards Jagson’s Gupta started demanding, through email, a cut in Atkins commission.

In 2012, Jagson’s reinsurance business was given to Marsh.

Atkins hired a private investigation firm to find out any payment of kick-backs by Marsh to Gupta.

As per the SAT’s order, the investigation firm had confirmed kick-backs to Gupta for diverting the reinsurance business to Marsh from Atkins.

Atkins alleged that during the telephonic conversation, Gupta had said that Marsh had agreed to pay him $4,00,000 in order to obtain Jagson’s business.

The SAT, in its order, said Atkins had relied on documentary evidence in support of the contention that Gupta had sought a bribe and was bribed by the officers of Marsh for diverting the reinsurance business from the appellant to Marsh.

The IRDAI stand that Atkins did not submit any documentary proof is false, said SAT.

An IRDAI official had then told IANS that the proof given by Atkins was not strong and hence focused investigation on Marsh’s books were not made.

The right to appoint or change reinsurance broker vests with the primary insurer. Interestingly, neither the IRDAI’s order nor the SAT order mentions the name of the primary insurer for Jagson or the reason for the change in reinsurance broker.

Reinsurance plays a major role in insuring huge risks. Many private general insurers are happy to front the business as the primary insurer passing on the lion’s portion of the risk to reinsurers. As a result the reinsurance brokers gained importance, a senior industry official had told IANS.

Business

India red-flags $800 million ADB aid package to Pakistan

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New Delhi, June 4: India has expressed deep concerns over the potential misuse of the $800 million ADB aid package to Pakistan as the country is increasing its defence expenditure, despite the poor fiscal position, with the army exercising de facto control over the government in Islamabad.

The army top brass now leads the Special Investment Facilitation Council, which gives it more control over the economic policy. India has warned that this entrenched military role poses serious risks of policy reversal and poor reform implementation, according to reliable sources.

Pakistan’s tax-GDP ratio has been declining, with the country going through an economic crisis. The foreign exchange reserves have hit rock bottom, and inflation has soared to double-digit figures. However, despite the dire economic situation, the military-driven government has gone for increasing expenditure on defence.

India has also pointed out that Pakistan has a very poor track record in implementing the economic reforms that are mandatory with these aid packages from multilateral institutions.

India’s concern is that these funds can be diverted for defence expenditure. The fighter jets purchased from China and the large number of drones used by Pakistan in the wake of Operation Sindoor reflect the increased spending on military hardware, an official said.

It pointed out that Pakistan recently approached the International Monetary Fund (IMF) for the 24th bailout, indicating policy ineffectiveness. This further shows that the previous ADB and IMF-supported programmes have failed to create sustainable macroeconomic stability.

India has also highlighted that Pakistan’s policy of promoting cross-border terrorism has led to a worsening of the security situation in the region.

It has further pointed out that Islamabad’s track record on implementation of the FATF action points related to terrorist financing investigations and prosecution of leaders of UN-designated terrorist groups and freezing and confiscation of criminal assets is also highly unsatisfactory.

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National

Monsoon session of Parliament from July 21 to August 12

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New Delhi, June 4: The Monsoon Session of Parliament will begin on July 21 and conclude on August 12, Union Parliamentary Affairs Minister Kiren Rijiju announced on Wednesday.

Both the Lok Sabha and Rajya Sabha will convene at 11 a.m. on the opening day, marking the start of the first parliamentary session in over three months.

The session is expected to be politically charged, especially against the backdrop of heightened demands by the Opposition for a special session.

Sixteen opposition parties had written to Prime Minister Narendra Modi on Tuesday, pressing for an immediate session to discuss the recent Pahalgam terror attack and the retaliatory Operation Sindoor — a cross-border military operation targeting nine terror camps in Pakistan and Pakistan-occupied Kashmir (PoK).

In response, the government has now formalised the Monsoon Session schedule, asserting that all issues, including those raised by the Opposition, can be taken up during the scheduled sitting.

The Budget Session earlier this year ran from January 31 to April 4 in two phases and saw the passage of several key legislations, including the Waqf Amendment Bill which seeks to focus on improving the management of waqf properties, empowerment of stakeholders relevant to management of waqf properties, improving the efficiency in survey, registration and case disposal process, and development of waqf properties.

While the core purpose remains to manage waqf properties, the aim is to implement modern and scientific methods for better governance. The Mussalman Wakf Act, 1923, was also repealed.

Apart from the Waqf Amendment Bill, the government also passed the ‘Tribhuvan’ Sahkari University Bill, 2025, for the establishment of ‘Tribhuvan’ Sahkari University to provide education, training, and capacity building in the cooperative sector and undertake research and development activities in related areas.

The Immigration and Foreigners Bill, 2025, was also passed to simplify the laws for the requirement of passports or other travel documents in respect of persons entering into and exiting from India and for regulating matters related to foreigners, including the requirement of a visa and registration.

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Crime

Man arrested for raping, murdering 80-year-old woman in Karnataka

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Kolar, June 4: A man has been arrested on charges of raping and murdering an 80-year-old woman in Srinivasapura town of Karnataka’s Kolar district.

The police have apprehended the accused, who has since been remanded to judicial custody.

The accused has been identified as 37-year-old Baba Jaan, a resident of Gaffar Khan Mohalla in Srinivasapura.

According to the police, the victim’s body was discovered on Monday evening at a garage near an open field on Mulbagal Road in Srinivasapura town.

Preliminary investigations revealed that the victim had been raped and murdered.

The victim had left home two days ago, informing her family that she would visit the church at Srinivasapura.

The woman stayed in Srinivasapura for two days, and on Monday evening, when the woman was waiting for a bus to return home, the accused targeted her.

The accused spoke to her to ensure she was alone.

He then allegedly lifted and carried her to an isolated place, where he brutally raped her before strangling her to death.

The accused also robbed Rs 15,000 from her bag.

During their investigation, the police obtained CCTV footage from a nearby shop, which captured the accused lifting the victim and hurriedly carrying her away.

While the police were gathering information, the accused returned to the crime scene to observe the unfolding events. Alert police personnel identified and apprehended him.

The accused later confessed to committing the crime to rob the victim’s money and jewellery.

The victim’s family has urged the police to “kill” the accused due to the heinous nature of the crime.

More details regarding the incident are yet to emerge.

On August 21, 2024, the Chintamani police had arrested a 28-year-old labourer for sexually assaulting a 65-year-old woman on the hospital premises in the wee hours.

Based on a complaint by the staffers at the Chintamani government hospital, the police launched a hunt and nabbed the accused.

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