Rashmi Saluja Faces Calls For Removal During Care Health Insurance AGM

The Kedaara Capital holding a 16% stake in Care Health voted against the reappointment of Dr. Rashmi Saluja, people in the know told NDTV Profit. Some shareholders also suggested Dr. Saluja steps down until allegations against her are cleared.

On the other hand, Religare employees who hold 10% stake in Care Health abstained from voting.

Dr. Saluja was previously reappointed with over 50% support, mainly from REL.

In a press statement shared exclusively with NDTV Profit, Saluja said that based on legal advice, CARE Health Directors have not found any cause for her removal. The statement also added that a response has been sent to the proposed acquirers.

Before the AGM, the Burmans had sent a letter calling for Saluja's removal. 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.

The Burman family’s push for Saluja’s removal and the ongoing legal battle reflect the increasing friction between these financial powerhouses.

The ongoing tensions between the Burman family and Religare have been brewing since the Securities Appellate Tribunal directed Religare to comply with a Securities and Exchange Board of India directive.

The directive by SEBI 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, challenged SEBI’s directive by filing an appeal with SAT. It also requested a forensic investigation into the Burman family's acquisition process.

While SEBI had previously instructed Religare to obtain necessary approvals by July 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.