SAT upholds order transferring Sahara Life policies to SBI Life

India’s Securities Appellate Tribunal (SAT) has upheld a 2023 order by the Insurance Regulatory and Development Authority of India (IRDAI) directing the transfer of all policyholder-related assets and liabilities of Sahara India Life Insurance Co Ltd to SBI Life Insurance Co Ltd

, the insurer said in an exchange filing on Wednesday.

SBI Life said it received the SAT order on Dec 10. The tribunal dismissed an appeal filed by Sahara India Life against the June 2, 2023 IRDAI directive, which required the immediate transfer of policies, assets and related obligations to SBI Life.

IRDAI had taken over the troubled insurer’s portfolio citing governance failures and concerns over the protection of policyholders’ interests. The regulator later appointed an administrator to oversee the transition before directing SBI Life to assume control of the book.

SBI Life said the SAT ruling confirms the validity of IRDAI’s transfer order and clears the final legal hurdle in the process. The company did not provide additional details on timelines for the absorption of the remaining assets and liabilities.

Sahara India Life, part of the Sahara Group, has faced regulatory scrutiny for several years over compliance and financial management issues. Wednesday’s ruling further solidifies the migration of its insurance business to SBI Life.