NEW DELHI: The Burman family on Wednesday asked Religare Enterprise (REL) board members to act in a neutral manner and not solely at the behest of ‘certain members’ amidst an ongoing rift with current chairperson Rashmi Saluja.
This statement by the Burmans came after the country’s anti-trust body, the Competition Commission of India (CCI), gave its approval for the acquisition of a 5.27% stake in REL by four firms controlled by the Burman family. CCI also gave its nod to the Burmans for the follow-up open offer to buy up to another 26% in REL and take its holding to up to 53.94%.
“We remain committed to seamlessly completing the Open Offer and directing REL towards sustained success,” said a Burman family spokesperson. “We take this opportunity to urge the Board to act in a neutral manner and not solely at the behest of certain members of the senior management,” the spokesperson added.
Reacting to the CCI nod, Religare said that it does not “give a clean chit to the acquirers” with respect to certain alleged competition law violations.
“The release issued by the CCI regarding the stake purchase clearly stipulates that the “approval is without prejudice to the proceedings that may be initiated under Section 43A, 44 and/or 45 of the Competition Act, 2002”, a Religare Enterprises spokesperson said. These sections pertain to powers of CCI to impose penalties for non-furnishing of information or submission of false information regarding combinations.
The Burman family, the promoter of FMCG major Dabur, had in September announced a Rs 2,116 crore open offer to acquire up to 26% additional stake in the REL.
Since the announcement was made, the Burman family and senior board members of Religare, led by Saluja, have levelled serious accusations against each other. Religare board has accused the Burmans of market manipulation and their involvement in various “frauds and financial improprieties” which are under investigation.