Madhya Pradesh HC paves way for holding Religare AGM

The Madhya Pradesh High Court on Thursday dismissed a public interest litigation (PIL) that had stalled the annual general meeting (AGM) of Religare Enterprises (REL). The division bench, comprising Chief Justice Suresh Kumar Kait and Justice Vivek Jain, ruled that the petitioner was not a shareholder of REL and, therefore, was not an aggrieved party in the case. The court granted the petitioner the liberty to approach an appropriate forum in accordance with the law.

This decision effectively lifts the stay on the AGM, which had been imposed on December 18, 2024, following a PIL filed by Vijayant Mishra. The PIL raised concerns over the proposed takeover of REL by the Burman family, alleging potential adverse effects on minority shareholders. The AGM, initially scheduled for December 31, 2024, was stayed pending further orders.

Solicitor General Tushar Mehta, representing the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), argued that the PIL was not maintainable as the petitioner was not a shareholder and that the court lacked jurisdiction. He emphasised that regulatory approvals, including those from SEBI and RBI, were already in place for the Burman family’s open offer.


The court’s decision paves the way for REL to proceed with its AGM, which includes key agenda items such as the reappointment of Rashmi Saluja as a director. It also allows the Burman family to move forward with their proposed acquisition of a controlling stake in REL. With SEBI and RBI approvals already secured, the court’s dismissal of the PIL removes a significant hurdle in the acquisition process.

The Burman family, which currently holds a 25.12% stake in REL through various entities, plans to increase its stake by an additional 26% through an open offer. Following the court’s ruling, REL is expected to announce a new date for the AGM, while the Burman family moves ahead with finalizing their acquisition plans.