Dabur’s Burmans now seek probe into Religare Chairperson Rashmi Saluja’s share sale

In a twist in the ongoing saga, the billionaire Burman family, promoters of Dabur, has now written to the Securities and Exchange Board of India (Sebi) and the stock exchanges seeking a probe into Religare Enterprises’ chairperson Rashmi Saluja’s trade in the shares of the firm. Four entities controlled by the Burman family – the largest shareholders of REL – wrote an email to Sebi and the bourses on November 8 stating that Saluja sold a portion of her personal holdings in the firm soon after a meeting with a representative of the Burmans. 

According to a report in The Economic Times, four entities, MB Finmart, Puran Associates, VIC Enterprises and Milky Investment and Trading Co, collectively holding 21.24 per cent in Religare wrote the email. The report stated that Saluja sold her personal holdings after a representative of the Burmans informed her of the family’s intention to make an open offer to acquire control of the company. 

A Religare spokesperson said that the meeting had nothing to do with Saluja’s sale of shares. 

The Burmans’ accusations come after reports of REL independent directors levelling allegations of fraud and other breaches against the Burmans emerged on Thursday. These independent directors wrote to Sebi, IRDAI and RBI accusing the Dabur promoters of material breach, which might harm the firm. They accused the Burman family of colluding with Malvinder and Shivinder Singh, who had founded the company and are now behind bars on charges of siphoning off funds, questioned the source of the funds for the acquisition of the firm’s control, and market manipulation. The Burman family had responded then saying that the allegations are a response to them drawing attention to some trades by an unspecified executive. 

The Burman family has, moreover, stated in their letter to Sebi that they wrote to the board of Religare as well regarding Saluja’s sale of 1.29 million shares worth Rs 34.71 crore on September 21-22 after a 45-minute meeting with their representative Arjun Lamba, on September 20.

“The information was communicated to you on a confidential basis in your professional capacity as executive chairperson of the company…Thereafter, to our surprise, we note that shortly after our meeting, you had undertaken the following trades," the letter stated, as per the financial daily. The shareholders said that it is their duty to inform the board about this trade. 

A Religare spokesperson told the daily that shares sold were employee stock options (ESOPs). Selling of ESOPs require approvals which span across several months before the actual sale. The entire process had started long ago, much before September 21, the spokesperson told the daily. 

Also read: Religare independent directors move against Burmans’ takeover plan; write to Sebi, RBI, IRDAI