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Informist, Friday, Dec. 27, 2024

 

NEW DELHI – The Madhya Pradesh High Court stayed Religare Enterprises Ltd.'s annual general meeting, scheduled for Tuesday, and the Reserve Bank of India's approval to the Burman family to make an open offer for acquiring an additional 26% stake in the company.

 

Further, the high court issued notices to the RBI, the Burman family, Religare Enterprises' Chairperson Rashmi Saluja, and the Securities and Exchange Board of India regarding a petition filed by Advocate Vijayant Mishra who sought to protect the interest of Religare Enterprises' minority shareholders.

 

"Notice issued. On taking steps, let notice be served upon the respondent. Till further orders, the notice dated Dec. 9 (by the RBI) and the annual general body meeting of Respondent No.7 (Religare Enterprises), which is scheduled to be held on Dec. 31, shall remain stayed. List after four weeks," said a bench of Chief Justice Suresh Kumar Kait and Justice Vivek Jain. 

 

The meeting on Tuesday was scheduled to reappoint Saluja as the chairperson of Religare Enterprises. The Burman family, the largest shareholder in Religare Enterprises, is looking to oust Saluja even though she has the backing of Religare Enterprises.

 

In August, the Enforcement Directorate searched the premises of Saluja in connection with a case of cheating and criminal conspiracy to defraud Religare Enterprises' shareholders. The Burman family is currently embroiled in a conflict with the company's chairperson over the change of control for key licences in the insurance, lending and broking business. 

 

Last week, SEBI approved the Burman family's proposed open offer to acquire the additional 26% stake in Religare Enterprises. Earlier this month, the RBI had also given its approval to the offer by the promoter family of Dabur. 

 

Mishra sought the appointment of an independent commission of enquiry to oversee and monitor the proposed acquisition of Religare Enterprises in order to protect the interest of minority shareholders. At 1057 IST, shares of Religare Enterprises were down 4.7% at INR 286.95 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Namrata Rao

 

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