Burman Family Demands Rashmi Saluja’s Removal From Care Health Insurance

The Burmans cited regulatory scrutiny involving Saluja as the primary reason behind their demand, the people quoted above told NDTV Profit on the condition of anonymity.

A letter outlining the demand has been sent to both Care Health Insurance and Kedaara Capital, a major investor in the company. Care Health Insurance has not yet commented on the issue, stating that they will address the matter only after their upcoming Annual General Meeting.

This dispute comes amid ongoing tensions between the Burman family and Religare, which have been brewing since the Securities Appellate Tribunal, in a ruling favouring the Burmans, directed Religare to comply with a Securities and Exchange Board of India directive. This directive allowed the Burman family to increase their stake in Religare by acquiring 1.73 crore shares at a price of up to Rs 235 per share, potentially raising their ownership to nearly 25%.

Religare, however, has been resistant, challenging SEBI’s directive by filing an appeal with SAT and requesting a forensic investigation into the Burman family's acquisition process, through a petition in the Delhi High Court. The company has raised concerns about whether the Burmans meet the "fit and proper" criteria necessary for the acquisition.

While SEBI had previously instructed Religare to obtain necessary approvals by July 12, 2023, to facilitate the Burman family’s open offer, the company has reportedly been slow to cooperate. Despite this, the SAT has provided some relief to Religare by staying a show-cause notice related to the case.

The Burman family’s push for Saluja’s removal and the ongoing legal battle reflect the increasing friction between these financial powerhouses, with more developments likely to unfold after the AGM.