Can a potential Rs 17,500 crore penalty for gross violation of the Insurance Act be whittled down to Rs 20 lakh? Surely not, one may say. But this, in fact, is exactly what the Insurance Regulatory and Development Authority (IRDA) has done for Reliance General Insurance Co, an Anil Ambani group company. Simply put, this is the violation. Reliance sold 3.5 lakh health insurance policies without informing IRDA - which is illegal. So when IRDA found this out, in an order dated 23 July 2009, it...