NEW DELHI: In a significant development in the ongoing dispute between the Burman family, owners of the Dabur brand, and top executives of Religare Enterprises Limited (REL), Maharashtra Police have booked several senior REL executives, including executive chairperson Rashmi Saluja. The case stems from allegations related to a money laundering investigation led by the Enforcement Directorate (ED).
The complaint, filed by the ED, led to the registration of a case against Saluja, REL CFO Nitin Aggarwal, general counsel Nishant Singhal, and shareholder Vaibhav Jalinder Gawali. The charges include cheating (under Section 420) and criminal conspiracy (under Section 120-B) of the Indian Penal Code.
The dispute dates back to September 2023, when the Burman family acquired an additional 5.27 percent stake in REL, prompting a mandatory open offer under SEBI guidelines, as they already held a 21.54 percent stake. The Burmans intended to consolidate their ownership by acquiring an additional 26 percent stake.
REL executives opposed this open offer, arguing that the Burmans were not ‘fit and proper’ for the takeover. SEBI required REL to provide documentation and comply with approval processes from regulatory bodies including the RBI and IRDA. Despite a deadline and further orders from the Securities Appellate Tribunal, REL’s management initially resisted compliance.
The controversy took a new turn with the complaint filed by Vaibhav Jalinder Gawali, a REL shareholder, who alleged that former directors Malvinder Mohan Singh and Shivinder Mohan Singh, in collusion with the Burman group, misappropriated REL assets. Gawali’s complaint led to an FIR, but subsequent investigations revealed that the complaint might have been orchestrated by REL executives to derail the Burmans’ acquisition.
According to the ED, Gawali was allegedly paid Rs 2 lakh by REL executives to file the complaint. The agency’s investigation also uncovered evidence suggesting that the complaint was strategically filed to obstruct the Burmans’ takeover and protect the interests of current REL officials, who might lose benefits if the Burmans assumed control.
On August 21, 2024, the ED conducted raids at locations linked to REL executives and seized documents related to the employee stock ownership plan (ESOP) and other financial transactions. The ED’s findings suggest that the FIR was a motivated effort to prevent the takeover and maintain the current management’s control over the company.
The case continues to unfold, with the ED alleging that the FIR was based on superficial grounds and lacked substantial evidence, further complicating the already contentious dispute over REL’s control.
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