Ekhtier cannot serve Swadesh Islami Life Insurance as CEO: SC

The Supreme Court has upheld a decision of the Insurance Development and Regulatory Authority (IDRA) that refused to renew the appointment of Md Ekhtier Uddin Shahin as the Chief Executive Officer (CEO) of Swadesh Islami Life Insurance Company Ltd.

Chamber judge of the Appellate Division of the SC Justice M Enayetur Rahim yesterday halted for eight weeks a High Court order that on March 21 this year stayed the IDRA's decision for six months.

The apex court chamber judge passed the order following a petition filed by IDRA challenging the HC order of stay.

There is no scope for Ekhtier to get back his job as the CEO of Swadesh Islami Life Insurance following the SC order, IDRA's lawyer Barrister Mohammad Shafiqul Islam told The Daily Star.

IDRA issued an office order on August 3, 2023, saying that Ekhtier Uddin will not be able to serve as the CEO of Swadesh Islami Life Insurance.

Besides, he will not be indirectly involved in the management of the insurance company, it said in the office order.

The directive was issued under the Insurance Act 2010 for illegally transferring customers' premium money in personal accounts and illegally harming the interest of customers by taking incentive bonuses, said IDRA, the regulatory body of the insurance sector.

Ekhtier was appointed as the CEO of Swadesh Islami Life on June 9, 2020. His contract expired on June 8, 2023.

Swadesh Islami Life applied to the IDRA for approval to renew the appointment of Md Ekhtier Uddin Shahin for the second time. However, IDRA has rejected the application for recruitment renewal.

The IDRA made the decision on August 17, 2023.

Later, on August 28, the company's chairman applied to IDRA for reconsideration of the application of Ekhtier 's appointment. Later, IDRA did not grant it.

Then, Ekhtier filed a writ petition with the HC challenging the IDRA's office order.

After holding a hearing on the writ petition, the HC on March 21 this year stayed the IDRA's office order for six months and also issued a rule questioning the legality of the IDRA's order.

IDRA recently filed a petition with the Appellate Division seeking a stay on the HC order.