Fresh salvo in Oswal family succession battle

Pankaj Oswal issues legal notices to mother, group companies seeking transmission of shares

The succession battle for the estate of late business tycoon Abhey Oswal has begun simmering again, with his eldest son Pankaj Oswal serving fresh legal notices to his mother Aruna Oswal and her associates. 

Pankaj is claiming a fourth share in the estate that includes shares in two listed firms — Oswal Greentech (OGL) and Oswal Agro Mills (OAML). The top management and board of the two companies are among the respondents. 

In the notices, Pankaj has sought transfer of 13.38 million OGL shares and 7.13 million OAML shares in his favour. On Tuesday, OGL shares fell 4.38 per cent to close at Rs 29.45 on the BSE, while OAML closed at Rs 12.41 after a fall of 3.87 per cent. At these prices, the shares claimed by Pankaj were worth about Rs 38 crore. 

“I will not let other people take the rightful share of the legal heirs, and I will do whatever it takes to win the battle in a legal way. I have discovered some hitherto hidden, but significant, wrongdoings happening at the group companies’ end. Abiding by the law, I will take every possible step to unearth the misconducts by the wrong people and seek justice,” Pankaj was quoted as saying in a release on Tuesday. 

When contacted, Anil Bhalla, chief executive officer at OGL, said the company will fight it out in court. 

In March 2016, Abhey Oswal passed away while on an official trip to Moscow. Though the succession battle had flared up at that time, it cooled down as Pankaj had to move to Australia to wrap up legal issues there. 

In September, Pankaj and his wife Radhika settled their dispute with the ANZ bank, after which he moved the Delhi High Court against his mother. Pankaj’s brother Shael is a musician based in Singapore, while sister Shallu is married to industrialist Naveen Jindal. 

In February, a single-judge bench of the Delhi High Court ordered status quo on the assets claimed by Pankaj. Apart from the shares in the two entities, Oswal’s personal bank accounts and two properties in Delhi’s Tilak Marg and New Friends Colony are now part of the litigation. 

Following the February order, OGL had moved an appeal before a division bench, stating that it owned the Tilak Marg property spread across 2.5 acres. 

“The appellant was not impleaded. Given the nature of the plea and the documents placed on record, the court is of the opinion that it would be appropriate that the single judge considers the appellant’s submissions with respect to the order impleading it at its earliest opportunity,” the division bench said in its April 11 order posting the matter on April 24. 

OGL approached the high court for removal of status quo on the property, but the court did not grant it relief, Pankaj said in the release. 

According to the Delhi HC website, the next hearing is scheduled for May 29.