The Supreme Court of India granted US investor Danny Gaekwad an extension to deposit Rs 600 crore in the Religare Enterprises Limited takeover case, now due by February 13. Gaekwad encountered fund transfer issues due to RBI permissions. Rival Burman Family seeks a controlling stake, while SEBI previously deemed Gaekwad’s offer time-barred.
New Delhi: In a high-stakes corporate battle, the Supreme Court of India on Wednesday (Feb 12th) granted US-based investor Danny Gaekwad an extension until 2:00 PM on February 13 to deposit Rs 600 crore, reaffirming its previous order in the Religare Enterprises Limited (REL) takeover case.
A Bench comprising Chief Justice of India Sanjiv Khanna and Justices PV Sanjay Kumar and KV Viswanathan allowed Gaekwad additional time after he cited difficulties in transferring funds due to RBI permissions. The Court stated:
“It is stated that the applicant made repeated attempts to transfer money, but without RBI permission it is not possible. So cash deposit should be permitted. Respondents have made allegations of several WPs, and multiple petitions filed before Delhi High Court…Without going into this, we permit applicant to bring Rs 600 crore through bank account nominated by RBI within 2 hours to enable deposit of money by tomorrow February 13 by 2 pm IST.”
The Court clarified that only the deadline for deposit had been modified, while all other terms and conditions from its previous order remain unchanged.
The REL takeover has turned into a fierce contest between Dabur India’s promoter group, the Burman Family, and Danny Gaekwad.
- The Burman Family Holdings initially triggered an open offer to acquire 26% of REL at Rs 235 per share, aiming to increase their stake to a controlling majority.
- Gaekwad countered with a competing offer, pledging to acquire 55% of REL at Rs 275 per share, offering a higher valuation to existing shareholders.
The Securities and Exchange Board of India (SEBI) rejected Gaekwad’s offer, calling it time-barred. Gaekwad, however, challenged SEBI’s decision in the Supreme Court, arguing that the RBI granted approval only in December 2024, thereby extending the deadline for his bid to January 2025.
The case originated from a plea filed by Sapna Govind Rao challenging the Delhi High Court’s decision to allow the Religare AGM to proceed despite concerns over the Burman Family’s takeover bid.
- Rao argued that the takeover undervalued REL shares and sought intervention.
- A single-judge bench refused to stay the AGM, stating the reasons given were insufficient.
- A division bench later upheld this ruling, prompting further appeals.
Key Legal Representation
- Danny Gaekwad was represented by Senior Advocate Mukul Rohatgi.
- Sapna Govind Rao was represented by Senior Advocate CA Sundaram.
- SEBI was represented by Solicitor General Tushar Mehta.
- Senior Advocates AM Singhvi, Nalin Kohli, and Abhimanyu Bhandari appeared for other respondents.
With the Supreme Court extending the deadline, all eyes are now on whether Gaekwad can successfully deposit Rs 600 crore by February 13 and how SEBI will rule on his latest application.
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