Rashmi Saluja Faces Intensifying Battle at Religare Amid Regulatory Scrutiny and Shareholder Disputes

Dr. Rashmi Saluja, the Executive Chairperson of Religare Enterprises Limited, is at the center of a heated dispute involving the company's management, regulatory bodies, and major shareholders. Despite her significant role in turning around the company after it defaulted on loans under the previous management, Saluja is facing intense scrutiny and opposition.

Shareholder Disputes and Reappointment

Recently, the shareholders of Care Health Insurance, a subsidiary of Religare Enterprises, approved Saluja's reappointment as a director with a comfortable majority. This decision came despite a demand from the Burman family, major shareholders of Religare Enterprises, to remove Saluja from the board. The Burmans, who own about 25.18% of Religare Enterprises, had written to the shareholders of Care Health Insurance urging them to vote against Saluja's reappointment, citing recent regulatory actions against her.

Kedaara Capital, another significant stakeholder, voted against Saluja's reappointment, but the resolution still passed with the support of Religare Enterprises, which holds a 64% stake in Care Health Insurance.

Regulatory Scrutiny and Allegations

Saluja is currently under the glare of regulatory bodies, including the Enforcement Directorate (ED) and the Securities and Exchange Board of India (SEBI). The ED has accused her of involvement in illegal activities, such as acquiring Care Health stock options at a low price and diverting Religare funds. Additionally, the Insurance Regulatory and Development Authority of India (IRDA) directed Care Health to buy back shares allotted to Saluja and levied a penalty for failing to obtain prior approval for such remuneration.

Saluja has vehemently denied these allegations, stating that the company has maintained transparency and compliance with regulatory requirements. She emphasized that the one-time settlement with creditors and the removal of the fraud tag have significantly improved the company's standing.

Hostile Open Offer and Management Resistance

The Burman family's open offer to acquire an additional 26% stake in Religare Enterprises has been classified as a hostile acquisition by the company's board. Saluja and the management have resisted this move, arguing that it undervalues the company and disregards the progress made under their leadership. The open offer has created significant uncertainty and tension within the company.

Despite these challenges, Saluja remains defiant, emphasizing the board's commitment to unlocking value for Religare Enterprises and its stakeholders. She has reiterated that the company's growth and financial health are evidence of the management's effectiveness and dedication.