About Religare Enterprises Ltd Part B

Misappropriation of Funds by Promoters Religare Finvest Ltd (RFL), which was earlier promoted by Shivinder Mohan Singh and his brother Malvinder Mohan Singh, had filed a complaint with the Economic Offences Wing (EOW), Delhi Police against the duo on charges of breach of trust, cheating, and criminal conspiracy for misappropriation of public money amounting to around Rs 2500 crore back in 2017. It is alleged in the complaint that funds belonging to RFL were routed to Religare Holding Company Pvt Ltd., owned and controlled by the Singh brothers, covertly via shell entities.{# ***** ***** #} Corrective Action Plan RFL was barred from undertaking any new business, since January 2018, by the RBI under its corrective action plan due to the Co.’s weak financial health owing to the misappropriation of funds by its former promoters. The Co has since repaid Rs. 6500 cr to its lenders. The Co. also put together a Debt Restructuring Plan in FY 20. Divestment Plan halted by RBI The Co. had entered into a Share Purchase Agreement, in October 2019, with TCG Advisory Services Pvt Ltd, to divest its entire stake in RFL and RHDFCL. But RBI halted the divestment plans and advised a revised proposal for revival of RFL and RHDFCL. Divestment of partial stake in CHIL The Co. divested part of its investment in CHIL to Kedaara Capital Fund LLP and Trishikhar Ventures LLP in June 2020. The Co. received a primary investment of Rs. 300 cr from Kedaara. Merger 4 subsidiaries of the Co. namely, Religare Comtrade Limited, Religare Insurance Limited, Religare Advisors Limited, and Religare Business Solutions Limited will be merged into one Co. Highlights Care Health Insurance Limited (CHIL) crossed the gross written premium of Rs. 2400 cr in FY 20. CHIL raised equity capital of Rs. 58.5 cr in FY 20.