Dabur Group’s Next Move Will Be Watched Closely for Their Response
The Enforcement Directorate (ED) has intensified its investigation into Religare Enterprises Ltd (REL) by filing an FIR against Executive Chairperson Rashmi Saluja and two senior officials. The case, dating back to 2023, involves false allegations against the Burman family, owners of the Dabur Group.
Table of Contents
ED’s Action: FIR Filed Under Charges of Cheating and Conspiracy of Dabur Group
Based on a complaint by the ED, the Mumbai police have registered an FIR under Sections 420 (cheating) and 120-B (criminal conspiracy) of the Indian Penal Code. This includes allegations against Rashmi Saluja, REL’s Chief Financial Officer Nitin Aggarwal, General Counsel Nishant Singhal, and shareholder Vaibhav Jalinder Gawali.
The ED’s investigation stems from a larger money laundering probe into Religare. This comes shortly after ED officials searched the homes of top Religare personnel, including Saluja, on August 23, 2023.
How the Dabur Group’s Burman-Religare Conflict Began
The conflict between the Burmans of Dabur and Religare executives dates back to September 2023. The Burman family, already owning a 21.54% stake in Religare, acquired an additional 5.27%, crossing SEBI’s threshold for mandatory open offers. Under SEBI’s guidelines, acquiring more than 25% of a company’s shares triggers an obligation to make an open offer to shareholders.
Also Read : Donald Trump Fires ‘100% Tariff’ Volley for Countries Dumping Dollar as India Aims to Increase Rupee Trade
The Burmans made an open offer to acquire another 26% stake, aiming to consolidate control over Religare. However, the board of directors at Religare opposed the offer, raising objections with SEBI. The board argued that the Burmans were not “fit and proper” to take over control, sending a series of 18 letters objecting to the acquisition.
SEBI’s Involvement and the Ongoing Legal Battle
SEBI intervened, setting a deadline for Religare to complete the approval process by July 12, 2024. When Religare failed to comply, SEBI took the matter to the Securities Appellate Tribunal (SAT), which upheld the regulator’s order. The tribunal extended the deadline to July 22, 2024, giving Religare one last chance to submit its applications.
Religare has remained defiant, continuing to challenge SEBI’s decisions, leaving the legal battle unresolved. The ongoing dispute raises questions about the future of the company’s leadership and ownership.
What’s at Stake for Religare Enterprises?
Religare, a major player in India’s financial sector, operates four key business arms:
- Religare Finvest and Religare Housing Development Finance Corp (NBFCs)
- Care Health Insurance (health insurance)
- Religare Broking (retail stock brokerage)
These businesses represent significant stakes in the Indian financial landscape. The outcome of this feud could dramatically alter Religare’s ownership and future operations.
What’s Next for Dabur Group?
With mounting legal pressure and ongoing investigations, attention now turns to the Dabur Group. How the Burmans navigate the next steps in this high-profile conflict will be crucial in determining the future direction of Religare Enterprises.
As the legal dispute between the Burmans and Religare management unfolds, the stakes remain high. With Religare’s resistance to the takeover and the ED’s ongoing investigation, the company’s leadership and future ownership hang in the balance. The business community and shareholders alike are closely watching the next move from both sides.
External Links: