Religare Enterprises has dismissed all allegations made by the proxy advisory firm InGovern in its recent report, which raised concerns over the company’s corporate governance and leadership credibility following the postponement of its annual general meeting (AGM).
Rashmi Saluja, executive chairperson of Religare Enterprises has termed the report as “manipulative” and “a malicious attempt to hurt the credibility of the company and its leadership.” She said the company is compliant with all laws and regulations, and will not be able to speak on matters which are sub-judice to uphold the sanctity of the Delhi High Court.
“Of recent, short selling is becoming a trend to undermine the growing potential of Indian companies under different reasons and we would really like to understand the actual agenda of InGovern by publishing a misleading report like this,” Saluja said.
Religare Enterprises dismisses InGovern allegations on delayed AGM as ‘misleading’
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Following Religare’s clarification, InGovern Research Services’ spokesperson said that they stand by their report released on Sunday.
One of the major concerns raised was about the postponement of Religare’s AGM without providing any reason. In a point-by-point response, Religare has said that the three-month extension was sought for special reasons such as “the status of the pending regulatory approvals of the open offer and its potential impact upon the company, and on the shareholding of the company.”
Further, the company said that while the report mentioned the extension order being challenged by acquirers, the “dismissal was deliberately concealed and suppressed to mislead the public at large.”
Another concern raised was about Religare’s soon-to-be appointed Statutory auditors who withdrew their consent recently, to which the company said, “M/s. Nangia & Co LLP have withdrawn their consent without citing any specific reason. This in no way reflects any governance lapse on the part of Religare as the incoming auditors were yet to assume charge.”
Religare said that SEBI’s interim order cum show cause notice and IRDAI’s order, have both been challenged before the Securities Appellate Tribunal (SAT), and received some relief, making them sub-judicial. Even the show cause notice issued to Saluja for alleged insider trading is being contested, and no final verdict has been passed in the matter, it said.
Religare pointed out that among other derogatory attempts, the report by InGovern represents Rashmi Saluja as she “navigates a treacherous path amid allegations threatening to undermine her authority”, and also goes on to build that “the credibility of Religare’s leadership hangs in the balance, igniting fears of instability”. In contrast, “the company has not only been able to repair its credibility with strong governance, it has also been able to achieve many milestones,” the company said.
From: financialexpress
Financial News
