12 June 2025
India's federal anti-money laundering agency, the Enforcement Directorate (ED), has summoned senior counsel Arvind Datar regarding his legal advice to Care Health Insurance regarding the controversial employee stock ownership plans (ESOPs) issued to Rashmi Saluja, the former chairperson of Religare Enterprises. Notably, Religare holds a 62.98% stake in Care.
Sources indicate that the agency may also question Hari Narayan, the former chairman of the Insurance Regulatory and Development Authority (IRDAI), who provided a legal opinion on the ESOP issue. Saluja was forced to resign from the parent company of Care Health, Religare Enterprises, in February after shareholders blocked her re-appointment to the board, concluding an 18-month tumultuous legal battle against the Burman family, Religare's largest shareholder. Following this, the Burman family, which operates Dabur, officially took control of Religare as its new promoter.
Datar, known for representing the Securities and Exchange Board of India (Sebi) in high-profile cases such as the Sahara fundraising case, reportedly informed ED officials that lawyers cannot be summoned to investigations involving their clients. He also stated that lawyers are prohibited from disclosing legal advice provided to their clients due to professional privilege.
In 2019, Care appointed Saluja as its non-executive chairperson. Two years later, the company sought a ESOP. A securities lawyer explained that ESOPs can be granted to both executive and non-executive directors if they are employees and not promoters. He added that Sebi rules recognize non-executive directors as employees for ESOPs.
In 2024, Irdai directed Care to buy back 7,569,000 shares issued to Saluja at the same price they were sold (₹45.32 per share) due to violations of its rules. The regulator also ordered the cancellation of all unused ESOPs. Cancellation of all unused ESOPs.
India's federal anti-money laundering agency, the Enforcement Directorate (ED), has summoned senior counsel Arvind Datar regarding his legal advice to Care Health Insurance regarding the controversial employee stock ownership plans (ESOPs) issued to Rashmi Saluja, the former chairperson of Religare Enterprises. Notably, Religare holds a 62.98% stake in Care.
Sources indicate that the agency may also question Hari Narayan, the former chairman of the Insurance Regulatory and Development Authority (IRDAI), who provided a legal opinion on the ESOP issue. Saluja was forced to resign from the parent company of Care Health, Religare Enterprises, in February after shareholders blocked her re-appointment to the board, concluding an 18-month tumultuous legal battle against the Burman family, Religare's largest shareholder. Following this, the Burman family, which operates Dabur, officially took control of Religare as its new promoter.
Datar, known for representing the Securities and Exchange Board of India (Sebi) in high-profile cases such as the Sahara fundraising case, reportedly informed ED officials that lawyers cannot be summoned to investigations involving their clients. He also stated that lawyers are prohibited from disclosing legal advice provided to their clients due to professional privilege.
In 2019, Care appointed Saluja as its non-executive chairperson. Two years later, the company sought a ESOP. A securities lawyer explained that ESOPs can be granted to both executive and non-executive directors if they are employees and not promoters. He added that Sebi rules recognize non-executive directors as employees for ESOPs.
In 2024, Irdai directed Care to buy back 7,569,000 shares issued to Saluja at the same price they were sold (₹45.32 per share) due to violations of its rules. The regulator also ordered the cancellation of all unused ESOPs. Cancellation of all unused ESOPs.
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