Religare takeover: Supreme Court extends deadline for Danny Gaekwad to deposit ₹600 crore

The Supreme Court on Wednesday granted Danny Gaekwad an extension until 2:00 PM on February 13 to deposit ₹600 crore to demonstrate his bona fides for the competing offer to acquire Religare Enterprises Limited (REL)..A Bench of Chief Justice of India Sanjiv Khanna and Justices PV Sanjay Kumar and KV Viswanathan said, "It is stated that the applicant made repeated attempts to transfer money, but without RBI permission it is not possible. So cash deposit should be permitted. Respondents have made allegations of several WPs, and multiple petitions filed before Delhi High Court...Without going into this, we permit applicant to bring ₹600 crore through bank account nominated by RBI within 2 hours to enable deposit of money by tomorrow February 13 by 2 pm IST. "The Court also clarified that only the portion with respect to the time of deposit is being modified and all the other terms and conditions of its previous order in the matter would remain the same. .On February 7, Supreme Court directed Gaekwad to deposit ₹600 crore by February 12 . As a consequence of this, the offer made by Burman Family Holdings (Dabur's holding company) was kept open till February 12. Further, the Court directed the Securities and Exchange Board of India (SEBI) to consider the applications by Gaekwad for the takeover of REL..The dispute surrounding REL is a complex takeover battle involving the Burman Family (promoters of Dabur India) and US-based investor Danny Gaekwad. The Burman Family initiated the process by acquiring a further stake in REL, triggering a mandatory open offer to public shareholders to acquire up to 26% of the company at ₹235 per share. This move aimed to increase their total stake to a controlling majority, solidifying their hold on the financial services firm. The open offer, a standard practice under SEBI regulations, allows existing shareholders an opportunity to exit their investment at a predetermined price during a substantial acquisition.However, Gaekwad entered the fray with a competing offer, attempting to disrupt the Burman Family's plans. He proposed a counter-offer to acquire a larger 55% stake in REL at a higher price of ₹275 per share, presenting himself as a more lucrative option for shareholders.SEBI, however, returned Gaekwad's offer saying that it was time-barred. Gaekwad has questioned the validity of this rejection before the Supreme Court. While Religare and the Burman Family claim that the deadline to make the open offer was September 2023, Gaekwad has claimed that it is January 2025. Gaekwad has contended that the Reserve Bank of India (RBI) accorded approval only in December 2024..Gaekwad has now made a fresh application which the SEBI is expected to decide at the earliest possible time..The order was passed in a plea filed by Sapna Govind Rao challenging the order of a division bench of the Delhi High Court refusing to halt the Religare AGM. Rao has contended that the takeover of REL by the Burman Family is being mishandled and that the latter's offer undervalues REL shares.Prior to the dismissal by the division bench, a single judge had found that the reasons given by Rao were not sufficient to stay the AGM. Therefore, it declined to grant Rao any such interim relief..Gaekwad was represented by Senior Advocate Mukul RohatgiRao was represented by Senior Advocate CA Sundaram.SEBI was represented by Solicitor General Tushar Mehta. Senior Advocates AM Singhvi, Nalin Kohli and Abhimanyu Bhandari appeared for other respondents.