The Hindu Business Line : Birlas seek handover of MP Birla group assets

THE Birla-Lodha spat took a new turn today with Khaitan & Co, the legal firm hired by the Birlas, filing a probate application for two wills of MP Birla and his wife signed in 1982 at the Calcutta High Court.

The Birlas have also asked for an immediate handover of the entire property of the MP Birla group to Mr P.K. Khaitan of Khaitan & Co and Mr Kashi Nath Tapuria, brother of Priyamvada Birla.

Both of them were common executors in the two wills of MP Birla and his wife.

Speaking to newspersons today, Mr N.G. Khaitan of Khaitan & Co said that the two wills were "mutual and concurrent".

In fact, there were two sets of such mutual wills.

While the first set was dated May 10, 1981 the second was signed on July 13, 1982.

"According to these two sets of wills, the property of the MP Birla group was supposed to go either to the husband or the wife, whoever died first.

After the death of both of them, the property should go to a trust and should be used for public charity.

In fact, after MP Birla's death, Mrs Birla was holding the property under the trust," Mr Khaitan said.

He alleged that the will placed by Mr Rajendra Singh Lodha at the Calcutta High Court seeking probate, claiming that Priyamvada Birla had bequeathed her property to him, was a "purported" document.

In this context, Mr Khaitan also mentioned that the two sisters of MP Birla had filed separate affidavits for grant of probate for the two wills of the 1982 set.

Khaitan & Co has also filed a suit alleging that Mr Lodha was neither a "rightful nor a lawful" executor of any will of Priyamvada Birla.

He did not rule out initiation of a criminal case against Mr Lodha.

Nor did he rule out the possibility of seeking the services of a receiver.

Mr Khaitan also referred to a discrepancy in Mr Lodha's legal application.

"In his reply to the caveats filed by the Birlas, Mr Lodha stated that Mr MP Birla died without a will. However, in his probate application he mentioned that Mrs Birla had inherited the assets through Mr Birla's will signed in 1982."

Mr Lodha's legal firm, Fox & Mandal, reacted sharply. According to Mr. Debanjan Mandal, partner of Fox & Mandal, the Birlas had referred to these "two alleged wills" in their affidavits.

"However, we were not allowed to inspect any such document signed in 1981-82. Moreover, it is unfortunate that they are commenting on judiciary matter in this manner," Mr Mandal said.

What is the worth of MP Birla group?

AMONG all the contentious issues being fought by the lawyers of the Birlas and the Lodhas, an interesting aspect relates to the valuation of the entire MP Birla group.

Mr Khaitan said that in his probate application, Mr Lodha had valued it at a mere Rs 3.52 crore. He was of the opinion that only the shares held by Priyamvada Birla in several companies of her own group and in the other Birla companies was valued at around Rs 2,404 crore. He gave a specific figure - Rs 24,04,05,38,923.

"Taking into account the charitable institutions, the valuation is even higher, in the range of Rs 5,000 crore," Mr Khaitan said.

Asked whether these valuations had been done by chartered accountants, he quipped: "The Birla family is well equipped to work out such valuations."

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