Religare Former Chairperson Rashmi Saluja Seeks Extension in SAT Matter with Next Hearing on October 9

Former Executive Chairperson of Religare Enterprises Limited (REL), Rashmi Saluja, has requested an extension before the Securities Appellate Tribunal (SAT) in a pending appeal, leading the appellate forum to schedule the next hearing in the matter for October 9.

The extension comes amid a web of multi-agency regulatory scrutiny and appellate appeals stemming from the contested takeover bid by the Burman family, promoters of Dabur India, and associated corporate governance disputes at Religare Enterprises and its unlisted subsidiary, Care Health Insurance Limited.

Context of Regulatory Actions and SAT Appeals

The proceedings before the Securities Appellate Tribunal stem from enforcement and regulatory directives issued over the past two years:

• Care Health Insurance ESOP Dispute: In mid-2024, the Insurance Regulatory and Development Authority of India (IRDAI) penalized Care Health Insurance ₹1 crore and directed the buyback and cancellation of stock options allotted to Saluja. Saluja and Care Health approached the SAT, which granted interim relief by staying the regulatory direction while restraining Saluja from dealing with or exercising 75,69,685 shares and unvested stock options in Care Health.
• SEBI Insider Trading and Compliance Orders: The Securities and Exchange Board of India (SEBI) examined trades executed in REL shares ahead of the Burman group's open offer announcement in September 2023. SEBI subsequently found violations of unpublished price-sensitive information (UPSI) norms, directing Saluja to disgorge ₹1.99 crore in avoided losses with 12% interest and levying a ₹40 lakh fine.
• Corporate Governance and Open Offer Battles: SEBI had earlier issued directions requiring Religare's board to apply for mandatory statutory approvals with the Reserve Bank of India (RBI) and IRDAI to facilitate the Burman family's ₹2,115-crore open offer.

Loss of Directorship and Management Shakeup

Saluja, who had led Religare Enterprises since 2020, faced persistent pushback from major shareholders. During an annual general meeting, shareholders overwhelmingly rejected a resolution regarding her reappointment to the board. Following the shareholder vote, she ceased to serve as a director and executive chairperson of the holding company.

Subsequent to the leadership transition and the Burmans consolidating control, Religare Enterprises also took steps to replace representatives across group entities and reconsidered legal postures in certain matters, including moving to withdraw subsidiary-level appeals before appellate tribunals.

Next Steps at the Appellate Tribunal

With the tribunal granting the extension, the matter will now be taken up on October 9. The outcome before the SAT remains closely tracked by institutional investors and market observers as an indicator of how appellate authorities address executive remuneration compliance, disclosure standards, and the finality of regulatory penalties in contested corporate takeovers.

Tags: Religare Enterprises Rashmi Saluja SAT SEBI IRDAI Care Health Insurance