The board and the independent directors of Religare Enterprises (REL) have once again thrown their weight behind executive chairperson Rashmi Saluja, accusing the Burmans of spreading false information.
“The recent misleading information shared in the public domain by Burmans is not only far from the truth, but can best be described as false claims without evidence. Such misinformation impacts shareholder value and erodes confidence in Indian corporate ethic, and must be dealt with immediately with the highest level of urgency,” they said in a joint statement.
The statement was issued after the Burman family, owners of Dabur India, sought an investigation into the allotment of about 21.4 million shares, representing 8% of group firm Religare Finvest, to Rashmi Saluja through employee stock ownership plans (Esops). The family alleged that she had cornered significant quantum of remuneration through Esops at REL and group companies Care Health Insurance and RFL, all without approval and requisite disclosures.
The statement issued by the REL board and independent directors said such “misleading” information disrupts the operations of the company and misleads stakeholders, impacting the share value of the company. Any person or persons should refrain from making such statements without fact checking, it said, adding, the board and the management are committed to the highest levels of governance, ethics and integrity.
The statement also said REL is now at an inflexion point due to “tireless” efforts of the board and the management over the last five years. A historic revival and one-time settlement of RFL was completed through organic collections and payments of more than Rs 9,000 crore made to the country’s banking system. As a result, the company’s market cap has increased to around $1 billion, from less than $100 million in March 2018.