Birla family challenge Birla Corporation purchase of Reliance Infrastructure

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India: Members of the Birla family have challenged the take-over of the Reliance Infrastructure in the Calcutta High Court claiming that it was done without the consent of the family or the court. The move follows a prolonged legal battle in 2004 between the Birla family members and chartered accountant R S Lodha. Lodha claimed that M P Birla's widow Priyamvada had bequeathed the assets of the estate to him. The matter is still being contested legally.

Representatives for Birla Corporation defended the purchase saying that the funds were not being taken from the estate and that it was being done through internal accrual and other sources. They added that the US$715m take-over would be a 'sweet deal' as the assets of the Reliance Infrastructure cement company were new. The deal was announced in early February 2016.

Last modified on 09 March 2016

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