Enforcement Directorate is looking into the leadership of Religare Enterprises Ltd.; the Board board reaffirms confidence.
Recently under investigation were key management personnel of Religare Enterprises Limited (REL) and Religare Finvest LTD, as the Directorate of Enforcement (ED) searched on August 21, 2024. Among those searched were the Chief Operating Officer of Religare Finvest LTD, Chirag Jain; Group General Counsel, Nishant Singhal; Executive Chairperson, Dr. Rashmi Saluja; and Group CFO, Nitin Agarwal.
The searches linked to an Enforcement Case Information Report (ECIR) derived from a First Information Report ( FIR) generated at the Matunga Police Station in Mumbai. Under Sections 420, 120-B, 511, and 114 of the Indian Penal Code, the FIR, filed by Vaibhav Gawli, accuses 14 people—including former REL founders Shivinder Mohan Singh and Malvinder Mohan Singh—of defrauding and criminal conspiracy.
REL, in a stock market filing, admitted that throughout the inspections, no damning documents or digital tools were found, despite the degree of the investigation. Still, the ED has frozen the Employee Stock Option Plan (ESOP) shares of Care Health Insurance Limited, a REL affiliate held by Dr. Saluja, Agarwal, and Singhal. Currently under appeal before the Securities Appellate Tribunal after an Insurance Regulatory and Development Authority of India (IRDAI) decision, these shares
REL’s Board of Directors summoned August 23, 2024, to address the issue. The board underlined in among the ongoing investigation its faith in the management team and promised unwavering support for them. “The board members decided to stand by the management and repose its faith and confidence in them,” the company added. The day’s closing value for Religare Enterprises Ltd.’s shares on the BSE was ₹270.35, a little decline of ₹0.15 or 0.055%.
