Care Health stands firm: Burman family's bid to oust Rashmi Saluja as chairperson rejected

The Board of Directors of Care Health Insurance Ltd (CARE) firmly rejected the Burman family’s demand to remove Dr. Rashmi Saluja from her position as non-executive chairperson. This decision came during the health insurer's Annual General Meeting (AGM) on Monday, following mounting pressure from the Burmans, who are the largest shareholders in Religare Enterprises Ltd (REL), which holds a 64% stake in CARE.

In a statement issued by CARE, the board noted that it had reviewed the Burman family’s communication seeking Saluja’s removal, citing the insurer’s Articles of Association and ongoing legal investigations. However, based on legal counsel, the board concluded that there was "no cause for removal," reinforcing Saluja's position. The company added, “A suitable response is being sent to the Proposed Acquirers accordingly.”

The Burman Family had argued that Saluja’s legal troubles—including investigations by SEBI for insider trading and an ongoing probe by the Enforcement Directorate (ED)—made her unfit to continue as chairperson. The ED’s charges include allegations of lodging false complaints against the Burman Family, accusations under Sections 420 and 120B of the Bharatiya Nyaya Sanhita (formerly Indian Penal Code), further intensifying the family’s push for her removal.

Despite the legal pressures, Saluja has defended her role, describing the Burman Family’s actions as part of a hostile takeover. In a recent interview, she criticized the family for their sudden change in stance after years of supporting her leadership: "They praised and supported management for six years and now claim they want the company for its potential, while dismissing the people responsible for that success."

The Burman family’s attempt to consolidate control over REL follows their open offer to acquire an additional 26% stake in the company, a move that has triggered heightened tensions within the boardroom. REL’s controlling stake in CARE, combined with the ongoing legal disputes, underscores the growing friction between Saluja’s leadership and the Burman family’s strategic aspirations.