In Short:
The Board of Directors at Care Health Insurance Ltd has denied the Burman Family’s request to remove non-executive Chairperson Rashmi Saluja. The Burman Family, which is trying to take over Religare Enterprises Ltd (REL) that holds a 64% stake in CARE, had sent a request before CARE’s Annual General Meeting. CARE’s Directors found no reason for her removal after consulting legal advice.
Care Health Insurance Stands Firm Amid Burman Family’s Demands
In a move that highlights their commitment to stability, the Board of Directors of Care Health Insurance Ltd (CARE) made a bold decision on Monday by rejecting a request from the Burman Family to remove Rashmi Saluja, the Chairperson of Religare Enterprises Ltd (REL), from her role as non-executive Chairperson of the health insurer.
Power Play Behind the Scenes
The Burman Family, which has a notable presence in various businesses, has taken steps to seize control over Religare Enterprises Ltd—the parent company that holds a significant 64% stake in CARE. This power shift has led to increased tensions within the firms.
A Letter Before the AGM
Prior to the Annual General Meeting (AGM) on the same day, the Burman Family, currently the largest shareholder in REL, submitted a formal request to the Board of both CARE and REL, pushing for Saluja’s removal from the Board of the private health insurer.
Legal Insight Guides Decision
In response, the directors at Care Health Insurance took a closer look at a communication dated September 27, 2024, from the prospective acquirers of REL. They evaluated the situation carefully and sought legal counsel. Their conclusion? There were no grounds for Dr. Rashmi Saluja’s removal. “The directors agreed that there exists no cause for removal of Dr. Rashmi Saluja and a suitable response is being sent to the Proposed Acquirers accordingly,” a press release from CARE confirmed on Monday evening.
This decision underscores the resilience and independence of CARE, setting the stage for what could be an intriguing chapter in the ongoing saga between these influential families and their business interests.
