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ED Seeks Details of Police Probe in Religare ‘Cheating Case’

Enforcement Directorate (ED) is learnt to have written to Mumbai police, seeking details of its investigation in a cheating case registered by the city police in connection with a bid to acquire Religare Enterprises by Burman family.

The ED is likely to register a money laundering case in the said matter, multiple people aware of the development told ET. The Mumbai police’s case, complainant Vaibhav Gawli, a shareholder of Religare Enterprises (REL), had named Dabur group chairman Mohit Burman and his family members, and former REL promoters Malvinder and Shivinder Singh among 14 accused in the case. JM Financial, manager of the Burmans’ open offer, is also an accused.

“Once documents are studied, an enforcement case information report (ECIR) could be registered,” a senior official said. A predicate offence is mandatory for the ED to pursue a money laundering investigation.

“Both FIRs (the second pertains to Mahadev online book app case in which the Burmans are named) are completely baseless and the family denies any wrongdoing or association whatsoever with any of the main accused named in both FIRs,” a spoke sperson of Burman family told ET. City police investigating the matter have found some infirmity in the complainant’s case. “Certain allegations made by the complainant don’t add up. The complainant alleges the open offer was to assist the Singh brothers get bail… However, the court documents show they got bail in June and the open offer was made in September. The complainant had bought the shares in October, 10 days after the offer was announced,” an official told ET.

“Assistance has been sought from Sebi…and reply is awaited,” said official. City police have reached out to REL. “The purpose of writing to Religare Enterprises was to find out if there was loss caused to company. The company sent representatives and explained their side of the case,” a senior officer from Mumbai police said. The complainant has accused Burman family of making false claims and representations in their open offer to the shareholders of Religare Enterprises, to manipulate them to tender their shares into the offer.

S-ET Image Source: Google

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