In a fresh First Information Report (FIR), a shareholder has alleged that the Burman family has attempted to make unfair profits through Religare Enterprises’ (REL) open offer. The latest FIR follows the earlier one filed on November 7, which accused the Burmans of involvement in the Mahadev App scam.
“The accused also made fraudulent and dishonest representations in REL’s open offer letter to induce shareholders to give their consent. This was to make unfair profits to them and unfair loss to the REL’s shareholders”, the FIR filed by Vaibhav Jalinder Gavali, a shareholder with 500 shares purchased on October 13, 2023.
According to the FIR, the risk factors in the open offer letter are not a complete analysis of all the risks associated with the open offer, but are only indicative in nature. Several disclosures including stakes held by group companies, defaults and financial relations among others were not disclosed in the open offer document.
When contacted, the Burman family’s spokesperson didn’t respond till the time of going to press.
Former REL promoters – Shivender Mohan Singh and Malvinder Mohan Singh – were listed as accused number 1 and 2, while MB Fin Mart – a Burman family firm – was number 3 and Mohit Burman no. 4. Family members including Vivekchand Burman (accused no. 5), Monika Burman (accused no. 6), Anandchand Burman (accused no. 9), Mini Burman (accused no. 10), Adityachand Burman (accused no 13) were among the accused.
Puran Associate, VIC Enterprise and Milky Investment & Trading Company (all belonging to Burman Group) and J M Financial were the other accused in the FIR.
The accused, according to the FIR had sent detailed public statements, draft offer letters and public announcements for the open offer, with “fraudulent intentions.”
Attempts to reach Gavali were unsuccessful. However, the Matunga police confirmed that an FIR was filed with them. The police have registered the case and started investigations too.
Last month, the Burman family had expressed its intention to raise its stake by 5.27% in Religare at Rs 235 a share, triggering an open offer. This was at a sharp discount to the then prevailing market price of Rs 270. Following which allegations of “low price” for open offer was made by REL and Care Health Insurance’s chairperson Rashmi Saluja, while the Burmans accused her of insider trading.