Birla Corp skids after Calcutta HC restrains Harsh Vardhan Lodha from holding office

Birla Corporation declined 4.34% to Rs 689.80 after the Calcutta high court on Friday ordered the removal of Harsh Vardhan Lodha from directorships and other positions in the trusts and societies of the MP Birla Group of companies.

Listed firms of the M P Birla group informed stock exchanges late on Saturday that a single bench order of the Calcutta high court, dated 18 September in a probate proceeding to which the firm is not party has inter-alia restrained Harsh V Lodha, non-executive director and chairman, from holding any office in them. The Birla Group companies were in the process of reviewing the order.

The extended Birla family is has been contesting the validity of the will of Priyamvada Birla, widow of M P Birla, whereby she bequeathed her assets to chartered accountant RS Lodha at her death in July 2004. The family had challenged the authenticity of the will as soon as Lodha approached the court to probate it. The family argues that the group assets should go to charities as per the mutual will of MP Birla and his wife Priyamvada made in 1982.

Shares of Birla Corporation have jumped 85.18% from its 52-week low of Rs 372.50 hit on 6 May 2020.

Birla Corporation's consolidated net profit tanked 53.2% to Rs 65.77 crore on 35.1% decline in net sales to Rs 1,221.97 crore in Q1 June 2020 over Q1 June 2019.

Birla Corporation is primarily engaged in the manufacturing of cement as its core business activity. It has significant presence in the jute goods industry as well.

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