Delhi HC disposes Religare petition over SEBI inaction

The Delhi High Court has disposed the petition of Religare Enterprises against the Securities and Exchange Board of India (Sebi) over alleged “inaction” on complaints against the Burman family, stating that the issue was already addressed on May 31.

The matter, originally scheduled for August 20, was heard on August 12 after four Burman family-owned entities — MB Finmart, Puran Associates, VIC Enterprises, and Milky Investment — sought to intervene. They informed the court that the relief sought by Religare had already been addressed through a communication by Sebi. Religare now plans to approach the Securities Appellate Tribunal seeking a forensic audit.

In its petition, Religare had asked the court to direct Sebi to consider representations made in relation to Burman’s open offer and the acquirers. The company also sought a time-bound forensic audit to uncover the facts surrounding its grievances and requested Sebi to produce a detailed report on any actions taken.

“In the opinion of the court, the primary grievance of the petitioner stands redressed and to that extent the relief sought in the present writ petition has been rendered infructuous,” the order said. The court has disposed the matter, noting that the request for a forensic audit was linked to the representations in which Sebi found no merit and had taken no further action.

Religare, however, has challenged Sebi’s May 31 decision in the SAT, alongside its ongoing appeal against Sebi’s interim order dated June 19. The financial services company also plans to approach the SAT to push for a forensic audit.

In a fresh representation, Religare raised concerns regarding a WhatsApp communication allegedly from Arjun Lamba, who is closely associated with the Burman family. The Sebi lawyer said the new information will be taken up by the regulator on its merits.

In July, the SAT had directed Religare to comply with the regulator’s interim order to seek all regulatory and statutory approvals for the Burman family’s open offer by July 22. The next hearing in this matter is scheduled for August 29, after which the open offer may proceed.

The Burmans, the promoters of FMCG major Dabur, had accused the Religare board and its chairperson Rashmi Saluja of obstructing the open offer, arguing that the Burman family was not ‘fit and proper’ to undertake the acquisition.

The dispute centers around an additional 5.27% open market stake purchase by four entities owned by the Burman family in September 2023, which triggered an obligation for open offer as they already held 21.54% stake in Religare. The Burman family had announced the open offer to acquire an additional 26%.