In line with the order of the Telangana High Court but with delay, the Insurance Regulatory and Development Authority of India (IRDAI) has promoted SN Jayasimhan to the position of Chief Managing Director (CGM).
In accordance with the IRDAI order, Jayasimhan was promoted to the rank of CGM effective 25.4.2022, in accordance with the Telangana High Court order of 28.10.2021, sources said. IANS.
Last year, the court ruled that the then IRDAI president did not have the power to relax the conditions for selecting someone for the post of CGM.
In accordance with IRDAI standards, only a Fellow Chartered Accountant (FCA) can be considered for the post of CGM while the action of the Chairman to relax FCA to CFA/ICWAI (Chartered Financial Analyst/Institute of Cost and Works Accountants of India) and the appointment of another is incompetent and arbitrary.
The high court has ordered Jayasimhan, FCA to be the only qualified person and IRDAI will consider his case for the position of CGM immediately with full benefits.
He also rescinded Mamata Suri’s promotion orders, finding that she lacked FCA qualification and that her promotion was illegal.
The court also held that the power to relax the qualification was not vested in the President of IRDAI since no resolution to that effect had been passed.
Therefore, the President’s action of relaxing the FCA into CFA/ICWAI and promoting Suri is against the law, arbitrary and without jurisdiction.
For his part, Suri preferred to appeal the single judge’s order. The bench ordered an interim stay of the single judge’s order, but added that his order did not prevent IRDAI from promoting Jayasimhan in existing vacancies.
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Posted: Tuesday, April 26, 2023, 2:48 PM IST