Religare Enterprises denies proxy advisory firm allegations
Religare Enterprises has denied the allegations made by proxy advisory firm InGovern against its chairperson Dr Rashmi Saluja.
Investors will vote on various proposals of the company from Tuesday and results are expected at the AGM on February 7.
“We strongly reject these proxy advisory reports which demonstrate a concerning pattern of publishing unverified, misleading information without seeking any clarification from REL’s management,” said the company’s spokesperson in a statement.
InGovern has advised investors to vote against the re-appointment of Saluja amid series of court cases and regulatory lapses.
Reacting to the allegations, the spokesperson said that these reports, clearly orchestrated and motivated, raise serious questions about their timing and intent, particularly when companies like InGovern have previously received legal notices from REL for publishing false, incorrect, and mala fide reports.
The practice of these firms publishing unsubstantiated claims without verifying facts with REL’s management shows a complete disregard for ethical analysis and due diligence. Their failure to analyse REL during its most challenging period over the last 5-6 years, only to emerge now with misleading reports at this crucial juncture, exposes their questionable motives, he said.
Under Saluja’s leadership, Religare Enterprises transformed from a debt-ridden entity to a completely debt-free company, with the share price appreciating from ₹17-20 in 2018-19 to crossing ₹300, he said.
The turnaround includes repayment of external debt and establishing profitable operations across all business segments. The Board of REL, including its Independent Directors with distinguished careers in public service, stands firmly behind Saluja’s reappointment.
The matters regarding compensation practices and ESOPs are currently sub-judice, and as such, any attempt to influence public opinion through misleading analysis is not only unethical but also shows complete disregard for ongoing legal proceedings, he said.
As REL enters its next growth phase, Saluja’s continued leadership as Executive Chairperson is crucial for protecting minority shareholder interests, ensuring proper implementation of the consolidation plan, and maintaining growth momentum, said the spokesperson.
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