The Burman family has demanded the removal of Rashmi Saluja from Care Health Insurance. Care Health Insurance is a subsidiary of Religare Enterprises.
The Burman family has cited regulatory investigation as the reason for their demand, for which the Burman family holds Rashmi Saluja responsible.
The Burman family has sent a letter to Care Health Insurance and Kedaara Capital, a major investor in the company, demanding the removal of Saluja. Care Health Insurance has said on the matter that the company will consider the matter after the Annual General Meeting.
Legal battle between Religare and Burman family
This development comes amid the ongoing tension between Religare and the Burman family. In this dispute, the Securities Appellate Tribunal (SAT) had ruled in favour of the Burman family and asked Religare to comply with the SEBI order.
SEBI had allowed the Burman family to increase its stake to 25% by buying 1.73 crore shares in Religare at a price of Rs 235 per share. However, Religare opposed this and challenged SEBI’s order in SAT. It also filed a petition in the Delhi High Court demanding a forensic investigation into the acquisition process of the Burman family. Religare had questioned the eligibility of the Burman family for the acquisition.
SEBI had earlier directed Religare to obtain the necessary approvals by July 12, 2023, so that the Burman family’s open offer could be completed. But the company was slow in cooperating. Despite this, SAT had provided some relief to Religare by stopping the show cause notice issued to it.
The pressure by the Burman family to remove Saluja and the ongoing legal battles clearly reflect the growing tension between these financial powerhouses. There may be further developments in this matter after the AGM.
