The Kolkata High Court has ordered the removal of Harshvardhan Lodha from the Birla Empire, an MP worth Rs 25,000 crore.
The Calcutta High Court has ordered the removal of Harshvardhan Lodha from the post of trustee and director of MP Birla Group of Companies and other posts. The court’s ruling on Friday is seen as a major victory for the extended Birla family. Because this legal battle has been going on for many years with a will made by Madhav Prasad Birla (MP Birla) wife Priyambada Birla.
It is learned that in 1972, Priyambada Birla left the will in the name of his chartered accountant Rajendra Singh Lodha and his second son Harshvardhan Lodha. In the will, he talked about handing over his property and all the MP Birla empire worth Rs 25,000 crore to Rajendra Singh Lodha.
Kolkata High Court has ordered against Harshvardhan Lodha
The Lodha family on the one hand and the Birla family on the other have been fighting a legal battle for the last 18 years over the ownership of the Birla Corporation and other companies of the MP and Birla Group. Eventually, Harshvardhan Lodha will be removed from the post of chairman of cement manufacturer Birla Corporation and board director of other companies in the Birla Group, including Vindhya Telelinks Limited, Birla Cables Limited and Universal Cables Limited.
In May this year, a two-judge division bench of the Kolkata High Court allowed the re-appointment of Harshvardhan Lodha as a director in some of the above bodies. The Birla family challenged the appointment in the Supreme Court, but the case was moved back to the High Court. The special administration board of the court gave the verdict on the same day. Harshvardhan Lodha cannot be re-employed in those companies, nor can he be paid any remuneration on the basis of profit.
Meanwhile, a statement from the Birla family said the court’s administrative committee had made it clear on the basis of a majority decision that Harshvardhan Lodha MP could no longer hold any position in the Birla Group company. He will have no place in the post of Director in MP Birla or in any post of all the trusts and societies of Birla group.
It was also informed that the Lodha family will not be able to interfere in the decision of the court.
Meanwhile, a lawyer of Lodha Group has challenged the verdict of the Calcutta High Court, saying, “The decision of Justice Sahidullah Munshi to re-appoint Harshvardhan Lodha as the director of Vindhya Telelinks Limited and Birla Cable Limited does not seem to be valid at all.” He said necessary steps would be taken against the verdict of the Calcutta High Court.