Mumbai Police EOW submits extensive 3,000-page indictment against previous Religare Chairperson, Rashmi Saluja, in relation to ESOP matter
A 3,000-page chargesheet has been filed by the Economic Offences Wing (EOW) of the Mumbai Police against Rashmi Saluja, Nitin Aggarwal, Nishant Singhal, and Vaibhav Gawli, accusing them of alleged irregularities in the allotment of employee stock options (ESOPs) at Care Health Insurance Ltd.
The chargesheet alleges that Saluja, the former chairperson of Religare Enterprises, and her associates conspired to improperly allot ESOPs to Saluja in violation of insurance sector rules and to obstruct a takeover bid by the Burman family.
The background to this case involves a rejected proposal by the insurance regulator to issue 22.71 million ESOPs (worth over ₹250 crore) to Saluja. Despite this, Care Health Insurance’s board granted the ESOPs at a low exercise price of ₹45.32 per share in August 2022 without regulator approval. The regulator later ruled in November 2023 that these ESOP grants violated guidelines limiting non-executive director compensation to ₹10 lakh without prior approval. It ordered the cancellation of unvested and unexercised options and repurchase of already issued shares at exercise price.
This ESOP allotment dispute escalated amid a takeover battle for Religare between the Burman family and Saluja’s group. The Burmans alleged the allotment was illegal and designed to complicate their takeover by raising costs.
The chargesheet also reports that Gawli, an office assistant based in Mumbai, filed a police complaint, allegedly orchestrated by Saluja and others, promising him cash and shares in return. The Enforcement Directorate had previously flagged the matter as suspected misuse of ESOPs and began a related money laundering probe.
In summary, the chargesheet was filed because the ESOP allotments to Rashmi Saluja at Care Health Insurance purportedly violated regulatory guidelines and were part of a conspiracy to derail a takeover, involving misrepresentation and manipulation of company shares and complaints to authorities. The case is currently under investigation.
[1] Economic Times: "Mumbai Police files chargesheet against Rashmi Saluja, Nitin Aggarwal, others in Care Health Insurance ESOP case" (link) [2] Livemint: "Mumbai Police files chargesheet in Care Health Insurance ESOP case" (link) [3] The Hindu BusinessLine: "Mumbai Police files chargesheet against Rashmi Saluja, others in Care Health Insurance ESOP case" (link)
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