Burman’s legal threat over Saluja’s Esops; Care Health responds

The ongoing feud between the Burman family and the board of Care Health Insurance has escalated, with the Burmans threatening legal action if chairperson Rashmi Saluja is allowed to cash out her employee stock options (Esops). The Burmans, who own FMCG major Dabur Ltd, have raised concerns about the granting of 22.7 million stock options to Saluja, despite objections from the Insurance Regulatory and Development Authority of India (Irdai).

In a letter to the Care Health board, the Burman family investment firms highlighted their dissatisfaction with the situation, stating that Saluja stands to monetize from these “ill-gotten” options. They have demanded that the board refrain from issuing any further equity shares related to Saluja’s options and freeze payments of dividends and voting rights attached to the shares.

The Burmans have threatened legal action against the board members if their demands are not met, citing concerns about the value loss and business logic behind the compensation given to Saluja. On the other hand, the Religare spokesperson has dismissed the allegations as baseless and stated that the ESOPs granted to Saluja comply with all legal requirements.

The dispute comes in the midst of the Burman family’s plan to take over Religare Enterprises, with Care Health being a significant subsidiary. The situation remains tense as both sides stand firm on their positions, with the future ownership of Care Health hanging in the balance.