Religare's AGM Freeze Amid Chairperson and Burman Family Tussle

The Madhya Pradesh High Court has put a hold on the annual general meeting of Religare Enterprises Ltd, which was planned for December 31. This decision comes amid a conflict between Chairperson Rashmi Saluja and the Burman family, who are contesting control over the company's open offer.

The Madhya Pradesh High Court has intervened in the internal politics of Religare Enterprises Ltd (REL) by placing a stay on its intended annual general meeting scheduled for December 31. This judicial move comes amidst a corporate tug-of-war between REL Chairperson Rashmi Saluja and members of the Burman family over an open offer.

In the court order, issued until further notice, the meeting notice dated December 9, 2024, is suspended. The halt follows a petition filed in the High Court, highlighting ongoing disputes related to a significant stake in the enterprise.

The Burman family, notable for its control over FMCG giant Dabur, had earlier secured Reserve Bank of India (RBI) approval for an open offer aimed at increasing their ownership in REL by 26 per cent. However, allegations of fraudulent practices by this family from REL's independent directors have raised serious governance issues, prompting regulatory attention.

(With inputs from agencies.)