MP Birla Group
MP Birla Group initiates criminal proceedings against "rogue elements seeking to subvert the companies"
Kolkata: Triggering yet another row in the warring MP Birla Group, three subsidiaries of Vindhya Telelinks Ltd, a cable company of the Group, had started separate criminal proceedings against five persons, including three former directors of these companies, for alleged falsification of documents over a sustained period of time and misrepresentation of themselves as directors even after they ceased to hold office, the company said in a release.
"Prima facie it could be established before a learned judicial magistrate that their malfeasance had caused significant material damage, and that in their wrongful acts these directors were aided and abetted by officials who held key positions in these companies," the company said.
"Accordingly, the learned judicial magistrate had on 1 and 4 October passed separate orders instructing the police to conduct a search and seizure operation at Birla Building, 9/1 R.N. Mukherjee Road—the erstwhile registered office of the complainant companies. Substantial documents were recovered from Birla Building on 5-6 October in a search and seizure operation that stretched well past midnight," it said.
A legal battle between the Lodhas and Birlas has been raging since 2004 when Priyamvada Devi Birla bequeathed her estate worth Rs 5,000 crore to her chartered accountant R.S. Lodha.
Media reports earlier this year said the Supreme Court declined to entertain a special leave petition (SLP) by the Birlas against a Calcutta High Court Division Bench order that had dismissed contempt petitions against Harsh Vardhan Lodha, son of late RS Lodha, for continuing as director and chairman in Birla Corporation, Universal Cables, Vindhya Telelinks and Birla Cable.
In Sept 2020, the Calcutta High Court had ordered the removal of Harsh Vardhan Lodha from all the directorships and other positions in the trust's and societies of the MP Birla Group of Companies but in July 2021, the Supreme Court ruled that Harsh Vardhan Lodha can continue as director and chairman in Birla Corporation, Universal Cables, Vindhya Telelinks and Birla Cable.
According to a Telegraph report, while Harsh Vardhan Lodha has retained control over Birla Corporation Ltd by an ‘overwhelming majority’ at Wednesday's AGM, the warring Birla and Lodha camps traded charges of fraudulent and illegal voting that threatens to erupt into another row.
Debanjan Mandal, Partner, Fox & Mandal, counsel for group chairman Harsh Vardhan Lodha, said: “No matter what, the seized documents and those withheld by the accused persons will eventually shine light on the criminal acts of the accused persons."
“These acts were aimed at manipulating the management of the operating companies of the MP Birla Group. They failed miserably as the attempted fraud was detected in time,” he said.
According to the MP Birla group, "most recently, it came to light that votes were cast at the AGM of Birla Corporation Ltd by people not authorised to vote for the three complainant companies."
"Based on the advice of a retired judge of the Calcutta High Court, the Scrutineer for the election had declared these votes as illegitimate because voting by these unauthorised persons was not backed by proper board resolution. The person duly authorised by the boards of these three complainant companies was eventually allowed to exercise the voting right for these companies and all resolutions supported by the management of Birla Corporation was carried by overwhelming majority.
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