IDRA Faces Allegations Over Mandal Removal

The Insurance Development and Regulatory Authority (IDRA) is facing serious allegations of regulatory deception following the protracted legal and administrative saga of Dr. Bishwajit Kumar Mandal. The case has highlighted potential irregularities in how executive removals are handled and raised concerns over the credibility of assurances given by regulatory officials.

Background

Dr. Mandal was removed as Chief Executive Officer (CEO) of Homeland Life Insurance in 2023 under the chairmanship of Mohammad Zainul Bari. The official reason cited by IDRA was Dr. Mandal’s alleged failure to provide information to a special auditor—a claim considered a breach under Section 50 of the Insurance Act 2010 for compromising customer interests. However, insurance experts note that there was no precedent for treating failure to provide information as a breach that harms customer interests. Sources indicate that the real cause of friction stemmed from conflicts with London-based Sylhet directors, who sought financial benefits contrary to insurance and company law, which Dr. Mandal refused to approve.

Following his removal, Dr. Mandal filed writ petitions in the High Court, which temporarily suspended the removal order, creating a legal limbo where neither he nor Homeland Life could appoint a CEO. The interim order was issued on 17 December 2023.

In September 2024, Dr. Mandal joined Jamuna Life Insurance as CEO and applied for IDRA’s approval for his appointment. IDRA rejected the request, citing ongoing litigation involving Homeland Life. Dr. Mandal filed a second writ petition (No. 6657/2025), which the High Court temporarily stayed.

Assurances and Litigation Withdrawal

After repeated discussions with IDRA officials, Dr. Mandal submitted a formal letter on 24 November 2025, expressing willingness to withdraw both pending cases, contingent upon withdrawal of his removal order and reinstatement as CEO. IDRA members Abu Bakr Siddiq (Non-Life) and Apel Mahmud (Life) verbally assured him that the withdrawal would result in reinstatement. Trusting these assurances, Dr. Mandal withdrew both lawsuits.

Subsequent Developments

Contrary to these assurances, IDRA issued a revised removal order on 1 March 2026, three months after the litigation withdrawal. The revised order imposed four conditions, including a prohibition on Dr. Mandal holding executive positions at Jamuna Life or Homeland Life for one year. After this period, he may assume CEO roles in other insurance companies but may serve in other capacities within the sector immediately.

Dr. Mandal described IDRA’s conduct as “regulatory deception,” warning that such actions could undermine professional confidence and development within the insurance industry.

Timeline of Key Events

Legal Context

Under Section 50 of the Insurance Act 2010, IDRA can remove CEOs for actions compromising customer interests and may amend or revoke removal orders. However, imposing conditions is discretionary; there is no statutory requirement to enforce assurances. Dr. Mandal contends that IDRA’s revised order violated the commitments he received, undermining trust in regulatory governance.

Requests for comments from IDRA members Apel Mahmud and Abu Bakr Siddiq were declined at headquarters.