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Informist, Friday, Jan. 10, 2025

 

NEW DELHI - The Madhya Pradesh High Court has cleared the way for Religare Enterprises Ltd.'s annual general meeting and dismissed a public interest litigation by Advocate Vijayant Mishra who had sought to "protect" the interest of the company's minority shareholders.

 

"The petitioner is not a shareholder, is not aggrieved by the impugned order. This petition is accordingly disposed of with liberty to the petitioner to file before the appropriate court. Interim order stands vacated," said the high court.

 

Last month, the high court had stayed Religare Enterprises' annual general meeting, scheduled for Dec. 31, and the Reserve Bank of India's approval to the Burman family of Dabur group to make an open offer to acquire an additional 26% stake in the company. The high court had issued notices to the RBI, the Burman family, Religare Enterprises' Chairperson Rashmi Saluja, and the Securities and Exchange Board of India regarding the petition filed by Advocate Mishra.

 

Earlier, the meeting was scheduled on Dec. 31 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 the company.

 

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. 

 

In December, SEBI approved the Burman family's proposed open offer to acquire the additional 26% stake in Religare Enterprises. The RBI had also given its approval to the offer by the promoter family of Dabur. Mishra had 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.

 

On Thursday, shares of Religare Enterprises ended 4.7% higher at INR 295.15 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Vandana Hingorani

 

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