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The Competition Commission of India has given its approval for the acquisition of a 5.27 per cent stake in Religare Enterprises Ltd and a subsequent open offer to buy up to another 26 per cent of the financial services firm by entities controlled by the Burman family.
“The acquirers are all systematically important non-deposit accepting non-banking financial companies (NBFCs) engaged primarily in the business of making investments in capital markets and providing secured and unsecured loans,” the Commission said.
The Burmans’ takeover plan is being stoutly opposed by the current management of Religare.
“While giving the approval, the CCI has clearly called out precise sections under which the acquirers may face action. It is apparent the acquirers are facing proceedings under the sections noted in relation to the mis-statements, false information etc. which are punishable in nature. This also will have an impact for the acquirers when other regulators take up the issue,” a Religare spokesperson said.
“So, proceedings can be initiated under Section 43A, 44 and/or 45 of the Competition Act, 2002 regardless of the approval,” he said.
