ED Records Statement Of Ex-Religare CFO Nitin Aggarwal In Money Laundering Probe

Mumbai: The Enforcement Directorate (ED) recorded the statement of Nitin Aggarwal, the former CFO of Religare Enterprises, on Thursday as part of its investigation into alleged money laundering related to the Religare-Burman takeover battle. Aggarwal, who was summoned to join the probe, arrived at the agency’s office by noon. Sources indicate that Aggarwal was questioned about the Employee Stock Options (ESOPs) and the proposed takeover of the company by the Burmans.

Aggarwal's role is under scrutiny due to his former position as CFO, overseeing the financial operations of Religare. He is being investigated for his potential involvement in the misappropriation of funds and for allegedly failing to disclose key financial details during earlier stages of the probe. The case also involves tensions with the Burman family, major shareholders of Religare, who have accused the management of financial irregularities as part of a larger power struggle within the company.

Despite these allegations, Religare's management, including Aggarwal, continues to deny any wrongdoing and asserts cooperation with authorities during the investigation.

Last week, the ED lodged an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act, 2002 (PMLA) to probe an alleged money laundering offence. This case is based on an FIR registered with the Mumbai police, where the ED is the complainant.

Aggarwal was not immediately available for comment.

On September 9, Religare Enterprises issued a statement to the exchanges, saying, “Pursuant to Regulation 30 of the SEBI Listing Regulations, we wish to inform that based on a complaint by the ED, the Mumbai Police has registered an FIR against three senior officials of the company. The concerned officials have denied the allegations made in the FIR and are examining the matter for such further action as deemed appropriate. There are no allegations against the company in this matter.

Earlier this month, the ED filed a case of cheating and criminal conspiracy against Religare Enterprises Chairman Rashmi Saluja, Nitin Aggarwal, and Group General Counsel Nishant Singhal with the Mumbai police. The ED has accused Saluja of filing a case against Dabur Group Chairman Mohit Burman and his family members “to derail the proposed takeover of the company and obfuscate the detection of illegal gains accrued through the acquisition of ESOPs of Care Health Insurance Limited (CHIL).

The ED alleges that Saluja and others unlawfully gained Rs 179.54 crore by acquiring ESOPs at a significantly lower price by diverting funds from M/s REL to subscribe to rights issues of CHIL.

In August, Saluja challenged the ED’s action of attaching ESOPs in the Delhi High Court, with a hearing expected on September 23.

Earlier in the month, the ED conducted raids on the homes of senior officials, including Aggarwal, Singhal, and Chirag Jain, COO of Religare Finvest. Several documents were seized in connection with the money laundering probe related to allegations of funds being siphoned from Religare Finvest, a non-bank finance company (NBFC) within the Religare Group.

ED Registers ECIR Against Religare Chairperson And Top Executives In Money Laundering Probe

The ECIR, based on the Mumbai Police FIR, details that after the Insurance Regulatory and Development Authority of India (IRDAI) rejected an initial ESOP grant request, the CHIL board approved a second grant of 2,72,11,327 shares to Dr. Rashmi Saluja at Rs 45.32 per share on August 2, 2022. These ESOPs were set to vest in three equal tranches. A rights issue proposed to raise up to Rs 300 crore by issuing 2,72,72,727 shares at Rs 110 each was approved by CHIL’s board, with REL investing Rs 192 crore out of Rs 250 crore raised. The ED alleges that REL's funds were used to buy shares at an inflated price to meet ESOP vesting conditions, while the ESOPs were granted at a significantly lower rate. It remains unclear if REL’s shareholders approved this investment.