ED conducts searches at Religare Enterprises executives' premises

The Burman family is the largest shareholder in REL and is currently embroiled in a conflict with the REL chairperson over a change of control at the financial firm

The Enforcement Directorate (ED) conducted searches at the premises of Rashmi Saluja, executive chairperson of Religare Enterprises (REL), and three other executives of the group on Wednesday, the company disclosed in an exchange filing. The other executives whose premises were searched include group CFO Nitin Agarwal, Group General Counsel Nishant Singhal, and Chief Operating Officer of Religare Finvest Chirag Jain.

The company said the searches “seem to have” emanated from the predicate offence registered in a first information report (FIR) filed in Mumbai in 2023 for offences of cheating and criminal conspiracy to defraud the shareholders of REL. It said the FIR named 14 persons as accused, including the erstwhile promoters of REL, four acquirer companies of the Burman Group who made the open offer, and the members of the Burman family.

The Burman family is the largest shareholder in REL and is currently embroiled in a conflict with the company’s chairperson over the change of control at the financial firm in key licences for insurance, lending and broking business. REL stated that the ED had frozen the ESOP shares of Saluja and the other three executives issued by REL arm Care Health Insurance.

REL exchange filing stated that “no incriminating documents /digital device were found and seized during the search and the officials cooperated with the ED officials providing them with the requisite information/documents.”

The board of directors of REL was apprised about the matter during a meeting on August 23. “The whole event was discussed in detail and the board members decided to stand by the management and reposed its faith and confidence in them,” said REL in the exchange filing.

Earlier this month, the Securities Appellate Tribunal (SAT) had granted a stay till a final decision on the order by the Insurance Regulatory and Development Authority of India (Irdai) against Saluja on the allotment of ESOPs. The tribunal had also imposed restrictions on Saluja, prohibiting her from exercising any pending ESOPs allotted by Care Health or diluting her shares until the final decision.

Cracking a whip
 

- The case originated from FIR in Mumbai 2023 for offences of cheating and criminal conspiracy

- REL exchange filing stated no incriminating documents /digital device were found and seized during search

- SAT had imposed restrictions on Saluja, prohibiting her from exercising any pending ESOPs allotted by Care Health