Financial Daily from THE HINDU group of publications
Saturday, Apr 29, 2006
Financial Daily from THE HINDU group of publications Saturday, Apr 29, 2006 |
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Corporate
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Corporate Disputes Birla, Lodha tussle over commercial space Kohinoor Mandal
Fault lines Rameshwara Jute Mills belonged to the MP Birla Group and according to the "controversial will" of the late Priyamvada Birla it was supposed to be under the control of Mr R.S. Lodha. But the Birlas managed to get control of the company in the AGM held in October 2005.
Kolkata , April 28 The Birla-Lodha spat, which started for the control of the Rs 5,000-crore MP Birla Group, has now spilled over to one of a tussle for occupancy of a 5,000 sq ft of commercial space in New Delhi. The space is supposed to be owned by Rameshwara Jute Mills Ltd, with iron ore and manganese mining rights in Jharkhand. It also owns around 20,000 sq ft of commercial space, including a 5,000 sq ft on Parliament Street in the Capital. In fact, all the major Birla groups, including BK Birla and Aditya Birla groups, have a presence in that space. MP Birla Group too had offices for its four companies and it included the flagship, Birla Corporation. Rameshwara Jute Mills belonged to the MP Birla Group and according to the "controversial will" of the late Priyamvada Birla it was supposed to be under the control of Mr R.S. Lodha. However, in its last AGM held on September 29, 2005, the Birlas managed to get control of the company. Subsequently, they tried to occupy a vacant space, the 5,000 sq ft, as it was earmarked for the Chairman of Ramehswara Jute Mill. At present Mr S.K. Parik, a close aide of Mr B.K. Birla and a Director & Secretary of Kesoram Industries Ltd, is the Chairman of Ramehswara Jute Mill. In October last year, there was a scuffle between the employees of Birla and Lodha over the space and subsequently Delhi High Court passed a status quo order on October 29, 2005. At present, the Birlas are alleging that employees of the Lodha companies have changed the minutes of a board meeting of Rameshwara Jute Mill and staked claim to that space. Mr Parik added that the previous management had done nothing for the company, which is still listed at the Calcutta Stock Exchange. "The mining rights of the company are of immense value. All the rights are lying dormant. We are currently trying to revive the rights," Mr Parik told Business Line. The board size of Rameshwara Jute Mills is now 10, of which seven belongs to the Birla camp. The company's earnings are only from that property. In fact, it has recorded a net loss of Rs 9.91 lakh in the last fiscal.
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