Religare Enterprises: Appeal filed in NCLAT against CCI order withdrawn

Religare Enterprises has withdrawn its appeal filed in NCLAT against the order of Competition Commission of India (CCI). In this order, CCI had allowed four entities of the Burman Group to acquire 5.27 percent stake in the financial services company.

The move comes after the Burman family acquired a majority stake in Religare Enterprises Limited (REL) through its investment firms. The Burman family has bought 25.16 per cent equity shares in the company through an open offer. With the new purchase, the total stake of the Burman family, which also owns FMCG firms Dabur and Eveready, has now increased to over 50 per cent in the company. The NCLAT order said that during the proceedings, "the authorised representative for the appellant (Religare) who is authorised to appear stated that the appellant is not interested in pursuing the matter further and intends to withdraw this appeal. In view of this, the appeal is deemed to be withdrawn and is dismissed. The four entities owned by the Burman family, which were made parties before the NCLAT, are - Puran Associates Private Limited (PAPL), VIC Enterprises Private Limited (VIC), MB Finmart Private Limited (MFPL) and Milky Investment and Trading Company (MITC). In February, Saluja, the executive chairperson of Religare Enterprises, was removed from the post of director by the company's shareholders after the Burman family acquired a controlling stake in the company. Following this, the board has also directed the subsidiaries to initiate the process of removing former executive chairperson Rashmi Saluja from her respective companies. 

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