Telangana HC orders issue of notice to IAI, Department of Financial Services

Chennai: The Telangana High Court has issued a notice to the Institute of Actuaries of India (IAI), The President of IAI and the Department of Financial Services on a writ petition filed by K. Subrahmanyam, retired Executive Director, Insurance Regulatory and Development Authority of India (IRDAI).

“The Telangana High Court has issued notice on Friday to IAI, Department of Financial Services and The President of IAI on a petition filed by me,” Subrahmanyam told IANS.

He had filed the petition in connection with retiring four members of IAI’s managing council before AGM, which in turn had reduced the Council’s size to eight which is below the statutory minimum of nine.

The IAI is a statutory body created by an Act of Parliament to govern the actuarial profession.

Subrahmanyam has approached the court for an order setting aside the retirement of four IAI Managing Council members ahead of the AGM and directing the Department of Financial Services to restore the Council to its earlier position.

He has also petitioned the court to direct the Department of Financial Services to take action against AIAI President Subhendu Kumar Bal for holding the Council meeting on 10.9.2022 breaching Section 12(2)(a) of the Actuaries Act, 2006 and also set aside the notice of AGM to be held on 17.9.2022.

Subrahmanyam had told IANS that on the orders of Bal, the Executive Director Mohan Bhatia, on September 3, informed four Council Members – Abhay Tewari, K. Subrahmanyam, Pravir Chandra, and Richard Holloway – over a terse email on that they would retire from September 4.

“If the Council does not meet the requirement of Section 12(2)(a) of The Actuaries Act, it cannot do any function assigned to it under Section 13 – calling of the AGM – and other sections, as it stands dissolved,” Subrahmanyam, had told IANS.

The first Chairman of IRDAI N.Rangachary told IANS that IAI was formed as a statutory body on the lines of Institute of Chartered Accountants of India so that the profession grows well and serves the insurance and other sectors.

Prior to the formation of IAI, the actuary profession was governed by Actuarial Society of India (ASI).