Rashmi Saluja, the Chairperson of Religare Enterprises, has taken her case to the Delhi High Court in an attempt to stop the company from deciding on her re-appointment as a director at the upcoming Annual General Meeting on February 7.
According to the petition, Saluja’s current tenure as a director of REL is set to continue until 2028. However, under Section 152 (6) of the Companies Act, one-third of the board members (excluding independent directors) need shareholder approval to remain on the board. As the sole executive director, Saluja is subject to annual retirement under this provision.
During the preliminary arguments on the case’s viability, the Court did not grant Saluja immediate relief. The hearing is now set for February 4.
Representing Saluja, Senior Counsel Mukul Rohatgi highlighted that this legal battle is separate from the ongoing corporate control dispute. He argued that the disagreement primarily concerns her contractual retirement terms and urged the court to issue an injunction preventing the REL board from passing a resolution to remove her or scheduling a meeting for that purpose. Notably, no legal representation for Religare Enterprises was present during the hearing.
On the other side, Senior Counsel Nalin Kohli, representing REL’s four independent directors, argued that they had not been properly served with the relevant documents and claimed that the lawsuit appeared to be “almost collusive” in nature, pointing to ongoing investigations involving Saluja.
Furthermore, Senior Counsel Abhishek Manu Singhvi, representing the Burman family – who hold a 26% stake in REL – contended that any board decision directly affects them, yet they have not been named in the lawsuit. He also mentioned that a similar case had been dismissed by the Madhya Pradesh High Court and is currently before the Delhi High Court’s division bench.
Following the preliminary arguments, Justice PK Kaurav instructed all relevant documents to be served to the opposing parties and set a deadline for completing pleadings by February 3. The next hearing is scheduled for February 4.
As the legal battle continues, over 85,000 shareholders of Religare Enterprises, with a market capitalization of ₹10,000 crore, are expected to vote on various proposals amidst the ongoing power struggle between Saluja and the Burman family. With multiple legal proceedings unfolding, the resolution of the matter remains uncertain, adding complexity to the high-stakes corporate battle at REL.
