Team News Riveting
The Birlas finally won the 16-year-old battle over Priyamvada Birla’s will as the Calcutta High Court on Friday ordered the removal of Harsh Lodha from the M P Birla group of companies.
The verdict will deprive Harsh Lodha from the Rs 25000-crore MP Birla empire that includes cement firm Birla Corporation and other groups of companies. This order is a significant victory for the extended Birla family, which is contesting the legal validity of Priyamvada Birla’s will.
When Priyamvada died in 2004, she gave the Rs 5000 crore estate to her close accountant, Rajendra Singh Lodha, who was a co-chairman. Lodha eventually became chairman of Birla Corporation. This estate included key holdings in the East India Investments Co and Gwalior Webbing, Birla Corporation, Vindhya Telelinks, and Universal cables, among others.
However, the Birla family challenged the Lodha family in court in 2008 about the contents of the will, and Priyamvada’s previous two wills. The case changed course with the sudden death of RS Lodha in October 2008.] In her will, Priyamvada declared that after RS Lodha, his son, Harsh Lodha would inherit the estates. Since the will was written in 1999 and was not officially granted “probate,” the Lodha family currently holds the MP Birla group.
The Birlas said that the high court had restrained Harsh Vardhan Lodha from holding any position in the M P Birla group. These directions mean that Harsh Vardhan Lodha immediately ceases to hold all positions in the M P Birla group, including that of a director in the companies and other positions in the trusts and societies of the M P Birla group.
Lodha is likely to appeal against the High Court in the apex court.
