New Delhi, March 9 Religare Enterprises has withdrawn its appeal at the National Company Law Appellate Tribunal (NCLAT) against an order by the Competition Commission of India (CCI).
The order had allowed four entities from the Burman family to acquire a 5.27 per cent stake in the financial services company.
This move follows the Burman family gaining a controlling stake in Religare Enterprises Limited (REL) after acquiring 25.16 per cent of the company’s shares through an open offer.
With this acquisition, the Burman family, which also owns FMCG giant Dabur and Eveready, now holds more than 50 per cent of REL’s shares, making them the largest shareholders.
During the NCLAT hearing, the tribunal recorded that Religare’s authorised representative expressed the company’s decision not to proceed with the appeal and requested to withdraw it.
The four Burman family-owned entities involved in this acquisition are Puran Associates Private Limited (PAPL), VIC Enterprises Private Limited (VIC), MB Finmart Private Limited (MFPL), and Milky Investment & Trading Company (MITC).
In February, following the Burman family’s growing control over the company, Religare Enterprises’ shareholders voted to remove its then-executive chairperson Rashmi Saluja from her director role.
The board has also directed subsidiary companies to initiate the process of removing Saluja from their respective leadership positions.
Religare Enterprises had initially challenged the CCI’s approval, arguing that the Burman entities had not given prior notice under Section 6(2) of the Competition Act before acquiring the stake.
The company claimed that the notice was submitted only after the acquisition was completed, and this aspect was not properly considered by the CCI.
However, the Burman family defended its actions, stating that Section 6(2) of the Competition Act requires the CCI to evaluate whether such acquisitions impact market competition.
They argued that Religare never raised concerns about the transaction leading to a monopoly or harming competition in the sector.
According to Section 6(2) of the Competition Act, any entity planning a merger or acquisition must notify the CCI within 30 days of finalising the agreement.
The withdrawal of Religare’s appeal now clears the way for the Burman family to solidify its control over the company.
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