In a white polo T-shirt, Rashmi Saluja is calm as we speak in the conference room of Religare Enterprises Ltd (REL) in Delhi’s Okhla area. In this interaction held before Sebi’s interim order-cum-show-cause notice, the Executive Chairperson of REL says the regulators are doing their job and the company’s board should be allowed to function. Edited excerpts:
Why have things turned hostile between the two parties after the Burmans announced the open offer for Religare?
I have a simple point to make. I don’t want to be given credit for the company’s turnaround but at least don’t discredit us. By doing that, you are not just affecting us, but the regulators and shareholders, and the perception of REL takes a beating. If you ask me whether things could have been handled better, the answer is yes. Until the open offer succeeds, it is the existing management or board that needs to run the company. Therefore, I am executing my responsibility while the regulators are doing their job. Why do you want to mix the two?
There have been serious corporate governance allegations made against you and REL [the issue took off in a big way after InGovern’s report on Saluja’s remuneration was put out last November]. What do you have to say about that?
Let me make it clear that no big decision has taken place without approvals at all levels. Be it the NRC (nomination and remuneration committee) or shareholders, it has to be cleared by them. There is no way I can do anything without notifying anyone. I certainly don’t have that luxury! If there was transparency at Religare from the time I took charge, what has changed since last September? Absolutely nothing! Let us leave it to the regulators to decide on all this. We just want the board to function and the management to work well, rather than combat these allegations.
Yes, but these are not small allegations and dents everyone’s reputation. What is your view on that?
Casting aspersions is easy, and the impact is not understood. There is nothing personal and I am answerable to the board, the management, regulators, and shareholders. You need to judge me and the company on the basis of performance and nothing more. I have gone well beyond my mandate and that’s precisely why [they] are looking to acquire Religare. Would you have looked at the company with this kind of seriousness five years ago? Making personal allegations is in poor taste. Today, the organisation has a positive environment, and we continue to do our work. Truth will and shall prevail.
The board is firmly behind me because of all the good work that has been done. We have clearly justified the mandate. If the one-time settlement had not been done, nobody would have even looked at us. For the next one year, we have enough liquidity in the NBFC business, and nothing is required for the health insurance business. There is no need to borrow from anyone and the NBFC is debt-free.
It is still an uncertain period ahead. How are you looking at what could be a very difficult future?
We have not stopped working since the open offer was announced last September. In fact, we are in a great place with each of Religare’s businesses growing. The fraud tag has been removed and there is a lot of pride after the one-time settlement. There is no problem on either regulation or compliance. There is no agency after us and the markets are looking at us very favourably. I want to emphasise that from September to now, the company has only grown stronger. The uncertainty of the open offer was very much there during the period. We will be there till we hang our boots. We will continue to do our duty and are determined to unlock value for REL.
Why is there so much controversy that always surrounds Religare?
A lot of companies in the past did not have high levels of transparency. Today, with technology and more demanding auditors, there is not only transparency but independence to ask questions as well. If we had [done] something wrong, the one-time settlement would have been inconceivable, and the company would have gone to the NCLT (National Company Law Tribunal). The banks know we have kept our word since repayments were done before time. We have four businesses, and you can check with anyone who is involved with us.
I give full credit to the board and management who have worked like a family. The share price has come a long way from `17 when I took charge and look at the wealth created. We must become an exemplary organisation and one that enthuses investors, be it those who have put in money or those who want to be a part of the story.