Religare Enterprises Bows Out as Burman Family Gains Control

Religare Enterprises has withdrawn its appeal against the CCI order allowing Burman Group entities to acquire a 5.27% stake. The Burman family, now holding over 50% in Religare, has solidified their control. The withdrawal led to dismissing the appeal and included directions to remove former chairperson Rashmi Saluja.

Religare Enterprises has decided to withdraw its appeal filed with the National Company Law Appellate Tribunal (NCLAT) against the Competition Commission of India's (CCI) decision permitting four Burman Group entities to acquire a significant stake in the company. This decision signifies a turning point as the Burman family, known for their control over businesses like Dabur and Eveready, have secured a controlling share of over 50% in Religare Enterprises Limited (REL).

As detailed during tribunal proceedings, Religare's representative announced that the firm was no longer interested in pursuing the appeal, leading to its subsequent dismissal last week. The bench ordered the removal of all pending applications, thereby settling the dispute in favor of the Burman group's consolidation efforts.

In a move indicating a shift in leadership, the board of Religare Enterprises also initiated actions to remove Rashmi Saluja, the former executive chairperson. Under Saluja's leadership, Religare had originally contested the CCI's decision, arguing procedural oversights during the acquisition process. However, the Burman group's stance remained that compliance with the necessary regulations was sufficient, effectively overriding concerns of competitive dominance.