Madhya Pradesh High Court Dismisses PIL Against Religare; Makes Way For AGM
It has cleared the way for the Burman family to pursue a controlling stake in the company
Madhya Pradesh High Court Dismisses PIL Against Religare; Makes Way For AGM
It has cleared the way for the Burman family to pursue a controlling stake in the company
The Madhya Pradesh High Court has dismissed a Public Interest Litigation (PIL) against Religare Enterprises, which obstructed its Annual General Meeting (AGM).
The division bench of Chief Justice Suresh Kumar Kait and Justice Vivek Jain ruled that the petitioner, Vijayant Mishra was not a Religare shareholder, hence not an aggrieved party. Also, the court lacked jurisdiction.
This decision lifted the 18 December 2024 stay imposed on the AGM following a PIL. The court granted the petitioner the liberty to approach an appropriate forum.
The PIL raised concerns over the proposed takeover of Religare by Dabur India’s Burman family, alleging potential adverse effects on minority shareholders. The AGM, scheduled for 31 December, was stayed pending further orders.
Representing the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), Solicitor General Tushar Mehta, argued that the PIL was not maintainable as the petitioner was not a shareholder and the court lacked the jurisdiction.
He emphasized that the SEBI and the RBI had already provided regulatory approvals for the open offer.
The court’s decision allows the company to proceed with the AGM, including the reappointment of Rashmi Saluja as a director. It allows the Burman family to initiate their proposed acquisition of a controlling stake in Religare.