The Supreme Court has granted US-based Digvijay ‘Danny’ Gaekwad permission to deposit ₹600 crore by Thursday at 2 pm in a Reserve Bank of India (RBI) designated account. This decision follows the court’s earlier directive for Gaekwad to make the deposit by the end of Wednesday to validate his ₹5,000 crore competing offer against the Burman Family’s open offer to increase their stake in Religare Enterprises.
On February 12, the Supreme Court provided Gaekwad with a brief extension, specifying that the deposit must be completed by 2 pm IST on February 13, 2025, with the RBI supplying the necessary bank account details and SWIFT number for the transaction. The court emphasized that all other terms from its previous order dated February 7, 2025, remain unchanged, and the extension is solely for the deposit process.
The dispute originated from a Special Leave Petition filed by Gaekwad, contesting an interim order from the Delhi High Court that allowed the Burman Family’s open offer to proceed despite Gaekwad’s objections. On February 7, the Supreme Court mandated Gaekwad to deposit ₹600 crore in compliance with Securities and Exchange Board of India (Sebi) regulations to substantiate his competing offer, with a deadline set for February 12.
The court clarified that failure to make the deposit by the specified date would result in the automatic vacating of the directives from the February 7 order without further court reference.
Gaekwad’s petition, submitted on February 12, indicated that he had sought RBI approval to establish an escrow account with a scheduled commercial bank for his competing offer prior to approaching the Supreme Court. In his communication, Gaekwad proposed to deposit ₹60 crore and secure a bank guarantee for ₹540 crore. This approval is essential for proceeding, as the funds are to be remitted from abroad, necessitating RBI authorization due to the significant amount involved. Gaekwad noted that he has yet to receive a response from the RBI and followed up on February 11, providing proof of funds exceeding $90 million in cash along with letters from his US bankers confirming the available balance.
In the ongoing litigation, the Supreme Court has identified the key issue as the date of the public offer. Gaekwad contends that the announcement made on January 18 should mark the official start of the open offer period, while Religare and the Burman entities argue that the date should be set to September 25, 2023, when the Burman family’s offer was initially presented. Sebi has not yet made a decision on this matter, with the applicant also seeking an exemption from certain Sebi regulations as a precautionary measure.
