Chennai, June 17 (IANS) The Institute of Actuaries of India (IAI) has decided to expel R. Kannan, a former member of Insurance Regulatory and Development Authority, for financial misconduct, said a member.
"IAI's top governing council met Saturday in Mumbai and decided to expel Kannan from the institute's membership for life and also levy a fine of Rs.500,000," council members told IANS preferring anonymity.
The governing council consists of 14 members out of which two are nominated by the central government. The Saturday meeting was attended by 10 members, said an official.
IAI president M. Karunanidhi said: "I do not deny the council's decision. The institute will follow its procedure and make an announcement in due course."
While the minutes of the Saturday meeting will have to be circulated amongst the members, the core decision - Kannan's expulsion and the fine - will not be changed, council members told IANS.
Shocked at the development, actuaries said that this is the first time in the history of the institute, a decision has been taken to ban a member for life.
According to a member of IAI's governing council, the disciplinary committee gave its report pronouncing Kannan as guilty of misconduct of claiming travel bills twice - from IRDA and IAI.
"Though the institute gave opportunity to Kannan to present his side of the case, he did not come in person or give a satisfactory written reply," said an IAI official.
"A first information report (FIR) has also been lodged by IAI against Kannan with the Mumbai police for his financial misconduct," another senior council member told IANS.
The decision to expel Kannan - once the face of the actuarial profession to the outside world as IRDA member and president of IAI - is a strong message to other members against any professional or other misconduct, said IAI members.
According to IAI council members, the Saturday's decision pertains to ten cases and there are other cases against Kannan.
The complaint against Kannan was referred to disciplinary committee in 2010 which gave its report only last year. It took another one year for IAI to conclude the case Saturday.
Kannan went to IRDA on deputation from the Reserve Bank of India (RBI) where he was the principal advisor and head, department of research on monetary policy.
During 1994-98, Kannan served as adviser in the International Monetary Fund, Washington, and from 1992-94, he was adviser to the governor, Bank of Mauritius, Mauritius.
He was also the appointed actuary of SBI Life Insurance Company Ltd for several years and also chaired the five-member 'exempt-exempt-taxed' (EET) committee formed by the union government.
A double post graduate degree holder in econometrics and economics, Kannan did his doctorate from Bombay University.
Kannan was not available for comments.