irdai: Telangana HC slams IRDAI Chairman for appointing official without jurisdiction

irdai: Telangana HC slams IRDAI Chairman for appointing official without jurisdiction


The Telangana High Court has passed an order against Insurance Regulatory and Development Authority (IRDAI) Chairman’s decision to appoint a senior official without jurisdiction. In 2014, the IRDAI chairman had relaxed the minimum qualification requirement from a fellow chartered accountant (FCA) to the chartered financial analyst (CFA) for an appointment of a candidate to a senior joint director (now known as chief general manager) position

“The power of relaxing FCA is not vested with the chairman since no resolution empowering the chairman to that effect is passed. Hence the action of the chairman in relaxing FCA as CFA / ICWAI providing appointment to the unofficial respondent is one without jurisdiction and is arbitrary action, and it is also contrary to law,” said Justice T. Amarnath Goud in his order dated September 1, 2021.

The matter reached the Telangana High Court over a long-fought issue wherein the insurance regulatory promoted Mamta Suri as chief general manager instead of promoting S Jayasimhan. The High Court order termed Suri’s promotion illegal, with effect from 2014, and asked IRDAI to inter-alia delete ICWAI and CFA as qualifications in Finance & Investment streams, making inter-CA, ACA, and FCA and not CFA as eligible qualifications.

CFA is a course offered by ICFAI or the Institute of Chartered Financial Analyst of India. This course is offered for imparting investment and financial management, whereas FCA means a qualification attained by an associate chartered accountant after putting five years of practice as an accountant after qualifying ACA.

“The appointment of the second respondent (Mamta Suri) is illegal since her qualification is CFA and also for the reason that as on the date of issuance of the notification dated 23.10.2013, the un-amended Executive Rules 2009 were in force, which stipulates only FCA as eligible qualification for the post of senior joint director,” the High Court said in its order.

As Jayasimhan is the only person qualified for the said vacancy as FCA, the respondents shall consider the petitioner’s case in the emptiness of senior joint director forthwith with all consequential benefits, said the high court order.

“The chairman of the recruiting committee is not the authority under IRDAI guidelines but is only one amongst the other members in the committee and the power of relaxing FCA is not vested with the chairman since no resolution empowering the chairman to that effect has been passed,” according to the order.



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