The Securities and Exchange Board of India (Sebi) has dismissed an application of Digvijay Laxhamsinh Gaekwad seeking an exemption to make a competing open offer for acquiring a 55 per cent stake in Religare Enterprises Ltd (REL).

“The applicant (Danny Gaekwad Developments & Investments, Florida) has failed to demonstrate his ability to meet the financial obligation for making the competing open offer,” Ashwani Bhatia, whole-time member, Sebi said in a 10-page order.

Gaekwad had offered a competing price of ₹275 per share which was ₹40 higher than the Burman’s offer of ₹235 per share.

Gaekwad through his entity — Danny Gaekwad Developments & Investments, Florida — had submitted a letter dated January 24, January 26 and February 1, to the market regulator requesting to grant requisite exemption under the takeover rules to allow him to make a competing offer for the majority stake in REL.

Sebi observed that the“applicant has failed to deposit ₹600 crore, as directed by the Supreme Court of India vide its order dated February 7, 2025 read with order dated February 12, 2025, which would have shown theapplicant’s commitment towards making the competing open offer”.

“In the absence of adequate proof of financial resources required for making the competing open offer, the application by the applicant does not appear to be bonafide. It seems frivolous and aimed solely at hindering the open offer process,’’ Sebi added.

The Delhi High Court, through an interim order issued on February 4, 2025, directed Sebi to decide onthe application filed by Gaekwad within the shortest possible time in accordance with law.

It also directed that the process of open offer made by the Burman group shall continue and that it will be subject to the outcome of the proceedings before the court.

Gaekwad then approached the Supreme Court, seeking a leave to appeal against Delhi High Court.

The apex court said Gaekwad or his/ their nominee shall deposit a sum of ₹600 crore.