Supreme Court Grants Danny Gaekwad Extension To Deposit ₹600 Cr In Religare Takeover Battle
The Supreme Court on Wednesday extended the deadline for US-based investor Danny Gaekwad to deposit ₹600 crores as proof of his bona fides in the ongoing battle to acquire Religare Enterprises Limited (REL). Gaekwad now has until 2:00 PM on February 13 to make the deposit.
A Bench comprising Chief Justice of India Sanjiv Khanna and Justices PV Sanjay Kumar and KV Viswanathan acknowledged Gaekwad’s attempts to transfer funds but noted that RBI approval was required. The Court permitted the deposit through a bank account nominated by the RBI, stating:
“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 the Delhi High Court… Without going into this, we permit the applicant to bring ₹600 crores through a bank account nominated by RBI within 2 hours to enable deposit of money by tomorrow, February 13, by 2 PM IST.”
The Court clarified that only the deadline for the deposit was modified, and all other terms of its previous order remained unchanged.
The takeover battle for REL involves the Burman Family, promoters of Dabur India, and Danny Gaekwad. The Burman Family had initially moved to acquire a controlling stake in REL by offering ₹235 per share to purchase up to 26% of the company’s stock through a mandatory open offer under SEBI regulations.
However, Gaekwad countered with a higher offer of ₹275 per share to acquire a 55% stake, aiming to disrupt the Burman Family’s acquisition plans. SEBI later rejected Gaekwad’s offer, citing that it was time-barred. While the Burman Family and Religare claim the deadline for making the open offer was September 2023, Gaekwad argues that the correct deadline is January 2025, as RBI approval was granted only in December 2024. Gaekwad has now filed a fresh application, which SEBI is expected to review at the earliest.
On February 7, the Supreme Court had directed Gaekwad to deposit ₹600 crores by February 12, keeping the Burman Family’s offer open until the same date. The Court also directed SEBI to consider Gaekwad’s takeover application.
The current Supreme Court order was passed in a plea filed by Sapna Govind Rao, who challenged a Delhi High Court division bench’s refusal to halt the Religare AGM. Rao argued that the Burman Family’s takeover undervalues REL shares and is being mismanaged.
Previously, a single judge of the Delhi High Court had found that Rao’s reasons were insufficient to stay the AGM and had denied interim relief. The matter continues to unfold as regulatory and legal challenges shape the future of REL’s ownership.