Supreme Court Allows 92 BAI Investors to Challenge Coerced 2017 Insurance Settlements

In a landmark ruling for thousands of investors, the Supreme Court of Mauritius has granted 92 Super Cash Back Gold (SCBG) policyholders the right to proceed with their legal challenge against the National Property Fund Ltd (NPFL).

Justice Véronique Kwok Yin Siong Yen dismissed the NPFL’s preliminary objection, which argued that previous settlement agreements prevented policyholders from taking further legal action.

The judge ruled that agreements signed under “duress” or “coercion” are not necessarily valid, effectively sweeping aside the fund’s attempts to block the lawsuit.

The Core Dispute

The legal battle, which began in April 2018, centers on allegations that the NPFL—the body managing the assets of the former BAI Group—arbitrarily slashed repayment amounts in 2017.

Lead counsel Roshi Bhadain, who represents the 92 claimants alongside Yash Balgobin, welcomed the decision as a turning point for his clients.

“This long legal fight is taking an interesting turn in favour of my clients, and I am delighted,” Mr Bhadain told the press.

He alleged that the 2017 agreements were “orchestrated under pressure,” with investors told they would receive nothing at all if they did not accept the reduced terms.

Allegations of Coercion

According to the claimants, the NPFL issued a “take it or leave it” ultimatum in 2017, deviating from the original contracts established in 2015 and 2016. The court heard that:

• Investors with balances between Rs 200,001 and Rs 2 million were allegedly forced to accept only 70% of their entitlements.
• Those with balances exceeding Rs 2 million saw their payouts capped at 60%.
• Policyholders were reportedly told via public notice that if they did not register on a specific date to accept these terms, they would forfeit their money entirely.

What Happens Next?

The Supreme Court’s interlocutory judgment means the case will now move to the merits of the claim.

The outcome will determine whether the original contractual rights of the SCBG subscribers must be fully respected.

The NPFL has been ordered to state its formal position on the substance of the case at the next hearing, scheduled for 28 January 2026.

Source: Le Mauricien