The Insurance Regulatory and Development Authority of India (Irdai) has suspended one of its junior officials on charges of financial misconduct, in what is being seen as an unusual move for the sector’s regulator.
In an office order dated August 21, the Authority announced the suspension of B.H. Suryanarayana Sastry, an Assistant Manager with employee number 201. The order, signed by Rajay Kumar Sinha, Member (Finance and Investment), said Sastry had admitted to the financial misconduct in his written reply submitted a day earlier.
The suspension, effected under Regulation 53 of the Irdai Staff (Officers and Other Employees) Regulations, 2016, will remain in force until further orders. During this period, Sastry will be eligible only for subsistence allowance as per staff regulations.
While the order confirmed Sastry’s admission of misconduct, it did not provide details about the nature of the violations. According to media reports, however, there are allegations of embezzlement involving nearly Rs 18 crore against him. These claims have not been formally outlined in the official suspension notice, which only referred broadly to “financial misconduct.”
The decision marks a rare instance of the regulator suspending an officer from within its own ranks. The order has been circulated to the Chairperson’s Secretariat, all Irdai members, and placed on the official website, indicating the seriousness with which the Authority is treating the matter.
Pending inquiry, the suspension is intended to ensure that Sastry is removed from active service while the full scope of the alleged misconduct is investigated. The Authority has not commented on whether further disciplinary or legal action will follow.
The incident has raised eyebrows in industry circles, given Irdai’s role as a watchdog over insurers and intermediaries, and now finding itself in the position of dealing with misconduct from within its own system. The inquiry process would typically determine the next steps, but the immediate suspension signals that the regulator intends to maintain a strict stance on accountability.
