In a significant development, the Board of Directors at Care Health Insurance Limited (CARE) has firmly rejected a proposal from the Burman family to remove Dr. Rashmi Saluja from her position as Chairperson. This decision came during CARE’s annual general meeting, where the Burman family, who are the largest shareholders in Religare Enterprises Limited (REL), tried to push for her removal. REL holds a 64% stake in CARE Health, giving the Burman family considerable influence.
Burman Family’s Objections
The Burman family raised concerns over Dr. Saluja’s eligibility, citing her involvement in ongoing legal investigations. These include cases being handled by the Securities and Exchange Board of India (SEBI) and the Enforcement Directorate (ED) related to insider trading and allegations under sections 420 and 120B of the Indian Judicial Code. The family argued that these legal issues disqualified her from continuing as Chairperson.
Board’s Decision
Despite the Burman family’s arguments, the board, after seeking legal advice, concluded that there was no substantial reason to remove Dr. Saluja. The board emphasized that her leadership has been crucial for the company’s progress. As a result, the rejection of the Burman family’s proposal strengthens Saluja’s position at CARE Health.
The company also confirmed that a formal response has been sent to the Burman family, addressing their concerns.
Dr. Saluja’s Stance
Dr. Rashmi Saluja, despite the pressures, has defended her role and leadership. She sees the Burman family’s move as part of a hostile takeover. She pointed out that for years, the family had supported her leadership and only recently changed their stance. Dr. Saluja has expressed disappointment, stating, “For six years, they praised the management. Now, they’re dismissing the same leadership that contributed to the company’s growth.”
The Power Struggle
The tension between Dr. Saluja and the Burman family has escalated after the family made an open offer to acquire an additional 26% stake in REL. This move is seen as an effort to consolidate control over REL and, by extension, CARE Health. However, the ongoing legal disputes and differing visions for the company have created a significant rift between Dr. Saluja and the Burman family.
Who is Dr. Rashmi Saluja?
Dr. Rashmi Saluja, with a background in medicine and degrees in MBBS, MD, PhD, MBA, and LLB, entered the corporate world in 2018. Initially appointed as an independent director, she soon rose to the role of Executive Chairperson at Religare Enterprises in 2019. Her leadership has been central in reviving Religare, making her a key figure in the company’s turnaround.
