'We're pained': Religare's Rashmi Saluja breaks her silence over IRDAI scrutiny

Financial services company Religare Enterprises (REL) is facing scrutiny from the Insurance Regulatory and Development Authority of India (IRDAI) concerning stock options granted to Rashmi Saluja, the executive chairperson of REL. Saluja, who also serves as the non-executive chairperson of Care Health Insurance, is at the centre of an investigation prompted by a Right to Information (RTI) query submitted by Rahul Kanoj. This RTI query revealed that IRDAI is actively probing the stock option allotment to Saluja.

In an interview with Business Today TV, Saluja addressed the ongoing probe and expressed her commitment to the company's governance and market performance. "We stand committed to ensure that with full governance and full strength," Saluja stated. "I am sure shareholders and investors will be taking notice."

When questioned about the nature of the situation, Saluja acknowledged the challenging circumstances but emphasized the company's resilience and adherence to regulatory standards. "Nobody more than me and the management is pained because we have worked so hard to turn around all the other companies to turn profitable and show these results," she said. "We are quite an exemplary company that with good governance and shared the union spirit and commitment, any company can turn around."

Saluja also highlighted the company's structure and regulatory compliance. "We are not a promoter-driven company. We are a board company and we adhere to strict regulatory guidelines," she explained. "It definitely pains us quite a lot to see that our efforts have not got converted into the actual share price of the company."

Regarding potential settlements, Saluja remained open to discussions that would benefit the company's future. "Anything which is going to help the company move forward, me as the chairperson, the management, and I’m sure the board at any given point of time is [going to be] the way forward," she remarked. "We want to do good for the shareholders, for the employees. They really put their hard work and everything behind it," she added.

On May 30, news broke that Saluja is under scrutiny by the IRDAI for receiving stock options in Care Health Insurance. This investigation, prompted by an RTI query from Rahul Kanoj, revealed that despite IRDAI's rejection of Care Health's request to grant Employee Stock Ownership Plans (ESOPs) to Saluja in December 2021, the health insurance company proceeded to allot the stock options worth Rs 250 crore to her. The proxy advisory firm InGovern highlighted discrepancies in the stock options' pricing, contrasting the exercise price with a higher rights issue price in the same year.

The Burman family, the largest shareholder of Religare Enterprises, accused Saluja of illegally receiving 22.7 million stock options in Care Health and raised allegations of insider trading. The ongoing dispute between the Burmans and Religare’s board, led by Saluja, involves mutual accusations of corporate governance violations. Earlier this month, the Burmans renewed complaints to the Securities and Exchange Board of India (SEBI) about Saluja's insider trading activities. Additionally, Religare’s independent directors have accused the Burmans of fraud and other breaches in a letter to regulators, intensifying the conflict within the company's leadership.