SC grants time to Danny Gaekwad to deposit Rs 600 cr for counter offer

The court also clarified that except for the modification of the time limit to deposit the said amount, other terms and conditions mentioned in the February 7 order will remain unaffected

The Supreme Court on Wednesday granted US-based investor Digvijay ‘Danny’ Gaekwad time till 2 pm on Thursday to deposit Rs 600 crore for his competing offer to acquire a stake in Religare Enterprises Limited (REL).

 

The apex court granted Gaekwad one more day to deposit the money as he claimed he had made “multiple attempts” to deposit the money but could not do so without the Reserve Bank of India’s (RBI’s) permission. 

 

The court also clarified that except the modification of the time limit to deposit the amount, other terms and conditions mentioned in the February 7 order will remain unaffected.

 

On February 7, the SC had extended by 5 days the time for Burman family's open offer for an additional stake in REL.

 

The court had then also asked Gaekwad to deposit Rs 600 crore on or before February 12, failing which the February 7 order would be set aside.

 

The Burman family open offer will remain valid until the Securities and Exchange Board of India (Sebi) decides on Gaekwad’s application for a counter offer, the court had said.

 

Burman’s open offer had also been extended by one day, according to an exchange filing. 

 

Gaekwad had moved the top court challenging a Delhi High Court order that had allowed the Burman open offer to proceed.

On Wednesday, the Supreme Court also questioned the market regulator's role as the price offered in the open offer was based on September 2023 valuations. 

 

Sebi, the SC said, should have exercised greater caution as shareholders were now being asked to accept prices prevailing 18 months ago.

 

The Burmans have made an offer for an additional 26 per cent stake under the Sebi takeover code after they acquired a 25 per cent stake in REL.

Solicitor General Tushar Mehta, appearing for Sebi, informed the court that Gaekwad’s letter had been returned to him as it was non-compliant with the regulator’s procedure.

 

Mehta further submitted that Gaekwad’s follow-up application came on February 1 after the Burman family's offer had been opened.

   

Contempt application against Saluja withdrawn

 

A contempt application filed by Burman family entities against Rashmi Saluja was withdrawn from the Delhi High Court on Wednesday.

 

The application alleged that Saluja, by making a statement during the 40th annual general meeting of Religare Enterprises, was in contempt of an order of February 4.