Burman family seeks removal of Rashmi Saluja from Care Health board amid ED probe: Report

The Burmans urged Care Health to uphold shareholder governance by removing Saluja as non-executive chairperson.

The Burman family, the largest shareholder in Religare Enterprises Ltd (REL), has called for the removal of Rashmi Saluja from the board of Care Health Insurance Ltd ahead of the insurer's annual shareholders' meeting on September 30, according to a report by Mint.

In a letter dated September 27, the Burmans cited Care Health's Articles of Association, arguing that an ongoing Enforcement Directorate (ED) investigation against Saluja renders her unfit to serve as director. The articles define an unsuitable person as someone facing government investigation or charges that could lead to over six months in prison. The ED had filed a case against Saluja on September 6, accusing her of filing false cases against the Burmans under Sections 420 (cheating) and 120B (criminal conspiracy) of the Bharatiya Danda Samhita.

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The Burmans urged Care Health to uphold shareholder governance by removing Saluja as non-executive chairperson. However, Pratap Venugopal, an additional non-executive independent director on the Care board, dismissed the letter’s significance, stating that the investigation does not automatically disqualify her. He emphasized that Saluja's reappointment as director would be decided at the insurer’s annual general meeting (AGM), not by the board.

Religare owns nearly 64% of Care Health, with private equity firm Kedaara Capital holding around 16%, employees about 10%, and Union Bank of India 5%. Although the Burmans hold more than 25% of REL’s shares, they are not represented on its board. It remains uncertain how their request to remove Saluja will be received.

Separately, Mint reported that Religare postponed its own AGM until December, a move that has upset some shareholders. Meanwhile, Saluja has reached out to the Ministry of Finance and the Prime Minister’s Office, claiming the dispute could impact the broader corporate landscape in India. In an exclusive interview with Moneycontrol on September 24, Saluja defended her leadership, stressing the company's revival over the last six years and calling for supportive partners to continue this progress.