Stop Baba Kalyani From Alienating HUF Assets: Nephew And Niece Tell Pune Court

Share this News:

Pune, 6th May 2024: The battle over partition is heating up in Kalyani family. The suit filed by siblings Sameer Hiremath and Pallavi Swadi came up for hearing in court today. The siblings are demanding their share in Kalyani family assets and have filed a civil suit in Pune court asserting 1/9th share each in all the assets, including shares of several listed and unlisted companies in the group.

In their suit filed in March this year, the siblings sought a temporary injunction on the grounds that their billionaire uncle Baba controls all the family assets which were built over the years because of the efforts put by their great grandfather Annappa Kalyani, and subsequently by their grandfather Dr Neelkanth Kalyani. They have sought that Baba Kalyani declare all the assets acquired over the years using the seed capital of the family.

The siblings in their suit have sought an order “restraining the Defendants from dealing with or in any manner disposing of through sale, transfer, delivery of possession or from creating any third-party rights in the properties of the HUF”. They have also pleaded the court “that pending the hearing and final disposal of this Suit, it is just and expedient to appoint a Court Receiver to safeguard the properties which are admittedly large in number, of the HUF”.

The court, while hearing the matter on March 28, this year, had issued a show cause notice to all the defendants – Baba Kalyani, his son Amit, Gaurishankar Kalyani (Baba’s younger brother), Viraj (Gaurishankar’s son), Sheetal (Gaurishankar’s daughter), and Sugandha (their mother) – as to why temporary injuction should not be passed against them.

When the case came up for hearing today, May 6, the siblings’ counsel Advocate Shailendra Aglawe moved an application for ad interim relief. The application stated that the defendants have received suit summons and notices. However, they are delaying the filing of their written statement, for reasons best known to them, the counsel stated. The application also stated that defendants might take advantage of summer break and try to dispose off assets owned by HUF. Hence they should be restrained from dealing with them in any manner.

After the court heard the siblings’ side, defendants stated that they will file their reply by May 9, 2024.

The suit filed by siblings may have a severe impact on fate of several listed companies under the Kalyani Family banner. The siblings’ contention is that all that is under the Kalyani Group is not owned by an individual member but by the joint family.

In their suit filed in Pune court, the duo has stated that as the head or Karta of the Hindu Undivided Family, ANK had started or invested in businesses of the said Joint Family either in the form of companies, or proprietorship concern, or partnership firms and also in the nature of shareholdings in different companies.

After ANK’s demise in 1954, his son Dr. Neelkanth Annappa Kalyani (NAK) started managing the Joint Family, its properties as well as the Joint Family business of the said Joint Family. After his health deteriorated in 2011, Baba Kalyani became the Karta of the HUF. The suit insists that everything that is now in the family pool, irrespective of the name in which it stands, is part of the HUF and hence to be considered during partition.

The siblings have listed several listed and private limited companies, firms, proprietorship firms, shares of other companies, immoveable assets, bank accounts and properties as part of the assets owned by the undivided family.

The siblings have stated that the Kalyani family owns and controls valuable publicly listed companies and private companies and Trusts which include Bharat Forge Ltd., Kalyani Steels Limited, Kalyani Consultants Private Limited, among others.

The siblings have stated that the family assets have multiplied over the years and are under Baba Kalyani’s control as of now. They have claimed that their uncle, “alone does not and cannot have a right to the same”, while seeking the partition.

Over the years Baba Kalyani has taken the Kalyani Group to newer heights by foraying into several businesses. He is among the richest Indians according to the Forbes list. A Padma Bhushan awardee, he is also a member of the Prime Minister’s Science, Technology, and Innovation Advisory Council.