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Birlas brace for bitter legal battle over inheritance
Wednesday, 14 July 2004, 19:30 IST
KOLKATA: An acrimonious legal battle is on the cards as one of India's biggest business families, the Birlas, have closed ranks to prevent an outsider from inheriting a chunk of their family wealth.
In question is a will left behind by Priyamvada Birla, the chief of the Madhav Prasad Birla group, which bequeaths all of her 
50 billion ($1.09 billion) group to a trusted aide and group's co-chairman Rajendra S. Lodha, who is unrelated to the family.
"We will contest the will in court and the family is at one on this," said Basant Kumar Birla, the senior most scion of one of India's better-known business families who just stopped short of questioning its authenticity.
Madhav Prasad Birla and Priyamvada did not have any children, but the Birla family had expected Priyamvada, who died last week, to pass on the group's reins to their nephew's son Yashovardhan Birla.
In a stunning will of inheritance, however, she is said to have left it all to Lodha, who came to be associated with the group as an advisor about two decades ago.
A top chartered accountant, whose firm keeps accounts for many Birla group companies, Lodha became close to MP Birla and after the latter's death won the confidence of Priyamvada as well.
He was named the group's co-chairman in 2001 and was part of every major decision made since then.
Though some MP Birla group sources said Lodha's inheritance was foreseen, Birla family members said the development was unprecedented and surprising. Basant Kumar Birla said: "Such a thing has never happened in the family."
And this is prompting various theories.
First, the very size of the will is a fuelling speculation. The will, which was opened in the presence of all the prominent Birla scions in Kolkata Monday, is believed to be of just a few sentences. It was reportedly written in 2001.
In the endless rounds of discussions that the Birla family members are holding with their lawyers, the brevity of the will is reportedly attracting a lot of attention.
One of the opinions legal experts suggest is to state that its author Priyamvada was of unsound mind - something that has the makings of a riveting courtroom drama.
But, sources said the Birlas might wait for the Lodha to make the first move because he would now have to probate the will, or seek the court's authentication of it, when Birla scions would be called upon for their views.
Also, lawyers for the Birlas could argue that the ownership issue of their companies was not clear because there were cross-holdings and the companies were considered separate entities so far as their management was concerned.
The extended Birla family has many groups that are headed by sons, grandsons and great grandsons of BD Birla, the founder of Birla empire. The MP Birla group runs cement factories, cable companies, educational institutions, jute mills and hospital, among other businesses.
Source: IANS
50 billion ($1.09 billion) group to a trusted aide and group's co-chairman Rajendra S. Lodha, who is unrelated to the family.
"We will contest the will in court and the family is at one on this," said Basant Kumar Birla, the senior most scion of one of India's better-known business families who just stopped short of questioning its authenticity.
Madhav Prasad Birla and Priyamvada did not have any children, but the Birla family had expected Priyamvada, who died last week, to pass on the group's reins to their nephew's son Yashovardhan Birla.
In a stunning will of inheritance, however, she is said to have left it all to Lodha, who came to be associated with the group as an advisor about two decades ago.
A top chartered accountant, whose firm keeps accounts for many Birla group companies, Lodha became close to MP Birla and after the latter's death won the confidence of Priyamvada as well.
He was named the group's co-chairman in 2001 and was part of every major decision made since then.
Though some MP Birla group sources said Lodha's inheritance was foreseen, Birla family members said the development was unprecedented and surprising. Basant Kumar Birla said: "Such a thing has never happened in the family."
And this is prompting various theories.
First, the very size of the will is a fuelling speculation. The will, which was opened in the presence of all the prominent Birla scions in Kolkata Monday, is believed to be of just a few sentences. It was reportedly written in 2001.
In the endless rounds of discussions that the Birla family members are holding with their lawyers, the brevity of the will is reportedly attracting a lot of attention.
One of the opinions legal experts suggest is to state that its author Priyamvada was of unsound mind - something that has the makings of a riveting courtroom drama.
But, sources said the Birlas might wait for the Lodha to make the first move because he would now have to probate the will, or seek the court's authentication of it, when Birla scions would be called upon for their views.
Also, lawyers for the Birlas could argue that the ownership issue of their companies was not clear because there were cross-holdings and the companies were considered separate entities so far as their management was concerned.
The extended Birla family has many groups that are headed by sons, grandsons and great grandsons of BD Birla, the founder of Birla empire. The MP Birla group runs cement factories, cable companies, educational institutions, jute mills and hospital, among other businesses.
Source: IANS