Religare Enterprises Ltd (REL) has hired Grant Thornton and Trilegal to conduct a governance review and identify potential instances of misconduct by current and former employees, including ex-CEO Rashmi Saluja. This review is aimed at examining the company’s financial practices over the past few years, suggesting improvements to systems and controls, and identifying any potential instances of misconduct. The review is expected to be completed within the next two months.
The board has also applied to the Burman family, the new promoter group, for a short-term loan of Rs 30-40 crore to address a cash flow gap. This loan would be used to meet the company’s immediate needs. The board has asked the Burman family to consider providing the loan due to the tight timeline required.
The governance review is likely to be a thorough investigation into the company’s financial practices. The appointment of Grant Thornton, a firm often used for forensic audits, suggests that the review may uncover some irregularities. The board’s decision to undertake this review is seen as an attempt to bring transparency and accountability to the company’s operations.
The development comes after the Burman Group took over the company in February, ending an 18-month battle with the former management. The new board has also appointed four new non-executive and non-independent directors to the company. The review is expected to provide a clean slate for the new management to operate effectively and make decisions.