Burmans seek Saluja’s removal from Care Health board

livemint.com:

Subscribe to enjoy similar stories. The Burman family, the largest shareholder in Religare Enterprises Ltd, has called for removing its chairperson Rashmi Saluja from the board of subsidiary Care Health Insurance Ltd, ahead of the insurer's annual shareholders' meeting on Monday. In a 27 September letter to the board of Care Health citing the insurer's Articles of Association, the Burman family wrote that a recent Enforcement Directorate (ED) investigation against Saluja makes her unsuitable for the post of director.

These articles define an unsuitable person as someone facing investigation by government agencies or someone who has been charge-sheeted and can face more than six months in jail. On 6 September, the ED filed a first information report against Saluja for allegedly filing false cases against the Burman family. The charges against Saluja are listed under Sections 420 (cheating) and 120B (criminal conspiracy) of the Bharatiya Danda Samhita (formerly the Indian Penal Code).

The Burmans wrote that “Care must implement the checks and balances mechanism so established by its shareholders and thus is duty bound to remove Rashmi Saluja from her position as non-executive chairperson of Care forthwith." Saluja's reappointment as a Care director comes up at Monday's annual general meeting. Religare owns close to 64% stake in Care, private equity firm Kedaara Captal around 16%, employees about 10% and Union Bank of India 5%. Despite owning more than 25% stake in REL, the Burmans are not represented on REL board.