The Haryana government has barred ICICI Prudential Life Insurance for three years from doing any further business with it or any of its departments for "intentionally delaying" the process of distribution of annuity to land owners and failure to carry out commitments.
"ICICI Prudential Life Insurance Company needed to be blacklisted," the state's Finance Department said in a statement.
When contacted, the company declined to comment on the matter.
"The noticee can, however, opt to pay compounding fee in lieu of entire or a part of the black listing period within one month from the date of this order.
"...This is by paying penal interest at a rate of one per cent for every six months or part thereof of the blacklisting period proposed to be compounded, by making a request to the government in this regard," the statement said.
Such enhanced rate of interest would be payable on the amount advanced to noticee for the period from date of receipt of advance till the date of repayment of advance and interest at SBI base rate to the Department, it said.
Necessary orders for allowing compounding of the black listing period will be passed after receipt of the requisite compounding fee, it added.
An Expression of Interest was issued in February, 2011 inviting bids from insurance companies and banks for the purpose of providing services for disbursement of annuity to the land owners under the R and R Policy of the state government.
The bid-cum-tender document were submitted by ICICI Prudential on March 31, 2011.
Thereafter, several rounds of discussions were held between the noticee and the state government with respect to various stipulations and condition stated in the draft Services Level Agreement, it said.
This included the obligation of the noticee as the Service Provider with respect to collection and validation of data of the beneficiaries under the scheme of annuity, it added.