Investors Question PIL That Led to Stay on Religare AGM

Key shareholders dispute premise that ownership will be concentrated in the hands of a few

- Nehal Chaliawala

Several large investors of Religare Enterprises Ltd (REL) have criticized the public interest litigation (PIL) filed by an investor that led the Madhya Pradesh high court to indefinitely stay the company's upcoming annual general meeting (AGM).

The investors disputed the premise of the writ petition filed by the individual named Vijayant Mishra, who argued that a takeover of Religare by the Burman family will concentrate the ownership of the company in the hands of a few, which is against the interests of minority shareholders.

Mint spoke with multiple investors, who collectively control about a tenth of Religare's total share capital.

"This is a mockery of shareholders' rights and shareholders' democracy," said Umeshkumar Mehta, chief investment officer, Samco Mutual Fund.