ED to widen probe into Esops to Rashmi Saluja, Religare officials

New Delhi: Probing the alleged laundering of monies in the Religare scandal, the Enforcement Directorate (ED) is scrutinising employee stock options (Esops) issued to Religare executive chairperson Rashmi Saluja and other officials at lower prices for "any illegality", a senior official said.

The federal agency had last month frozen Esop shares of Saluja and other officials worth ₹179.54 crore, alleging that they made unlawful gains of that much by diverting Religare Enterprises' funds to subscribe to rights issues of Care Health Insurance (CHIL).

The agency is now investigating additional Esops (beyond what it has already frozen) allegedly acquired by Saluja and other officials at a much lower price to make unlawful windfall gains, people in the know said.

Esops awarded to Saluja and other officials from Religare Enterprises and its financial services arm Religare Finvest are being scrutinised to "ascertain whether any illegality" was committed, the official cited above said.

"The value of Esops awarded runs into several hundred crores and merits scrutiny. If any illegality is found the same (Esops) will also be frozen." said the official.

As reported by ET in January, proxy advisory firm InGovern had estimated the Esops awarded to Saluja in Religare and its health insurance subsidiary Care Health Insurance to be worth ₹480 crore.

Last Sunday, the proxy advisory firm in its latest report said Sebi may examine the decision-making processes that led to the delay, as well as the company's actions regarding share allotments and Esops.

Saluja has repeatedly denied all charges levelled against her and maintained that all the Esops awarded to her and other officials of REL are "as per the company policies". She has reportedly said the Esops have been given only to incentivise all the employees.

In a related development, the Mumbai Police have got the statement of Vaibhav Gawli, an REL shareholder, recorded under Section 164 of the CrPC before a judicial magistrate (admissible in a court of law), said people in the know.

The police had registered an FIR against Saluja and others based on a complaint given by ED after the agency recorded Gawli's statement under Section 50 of the Prevention of Money Laundering Act (PMLA), which is also admissible in a court.

The FIR against Saluja, former group CFO Nitin Aggarwal and group general counsel Nishant Singhal was registered earlier this month.

ED alleged that Saluja and other senior officials of REL motivated Gawli to file an FIR in Matunga police station in Mumbai, alleging misappropriation of REL's assets/properties by former directors Malvinder Mohan Singh and Shivinder Mohan Singh in connivance with the Burman family who had made an open offer to acquire a 26% stake in REL. The ED further alleged Gawli was paid ₹2 lakh by REL officials to file the FIR against the Burman family.