The former Executive Chairperson of Religare Enterprises, Rashmi Saluja, has lodged a new writ petition in the Delhi High Court on Tuesday in an effort to quash the open offer by the Burman family-led entities. This latest legal move represents the seventh attempt by Saluja to halt the takeover process.
The petition, slated to be heard by the Chief Justice of the HC on Wednesday, alleges that SEBI has failed to enforce RBI-mandated conditions related to the approval of the open offer. In December, the RBI had approved the deal but directed the Burmans to consolidate NBFCs under their control by March 2026. Saluja contends that the Burmans omitted these important conditions in their Letter of Offer dated January 18, thereby misleading shareholders. However, it is noteworthy that the petition does not name the RBI as a respondent.
The outcome of the petition’s hearing on Wednesday may depend on the judicial interpretation of SEBI’s role in enforcing RBI mandates. This could potentially compel SEBI to clarify its position on enforcing inter-regulatory conditions.
In the midst of this legal battle, the Burmans’ open offer is now facing further delays due to the ongoing litigation, despite a previous directive from the Supreme Court to keep the offer open while SEBI evaluates a rival bid by US investor Danny Gaekwad.
The Burman Group, through entities like Puran Associates, VIC Enterprises, MB Finmart, and Milky Investment, has been embroiled in a contentious dispute with Saluja since announcing the open offer in September 2023. The offer, managed by JM Financial, was met with resistance from Saluja, who argued that it undervalued the company and did not comply with regulations. Over the past 16 months, Saluja has challenged the offer in various forums, including the Delhi High Court, Securities Appellate Tribunal, and the Supreme Court, with limited success. The prolonged legal battle raises concerns about investor confidence in REL during a crucial election year.
Recently, at the AGM, shareholders overwhelmingly rejected Saluja’s reappointment as chairperson and director of Religare, although she tried to prevent discussions on the agenda item.
The developments in the legal proceedings and the ongoing dispute between Saluja and the Burman Group could potentially have repercussions on the future of Religare Enterprises.
