Transfer of shares to Lodha in Birla holding firm stalled

The Company Law Board (CLB) today ordered that shares held in the name of Rajendra Singh Lodha in East India Investment Company, one of the holding companies of the MP Birla group, be restored in the name of late Priyamvada Birla, though the company would be administered by Lodha as an executor of her estate.

Two other applications, with similar subject matter, regarding Gwalior Webbing and Baroda Agents & Trading Company are pending before the CLB.

NG Khaitan, solicitor for the Birla family, said the entire MP Birla group comprised 30 companies, including Birla Corporation, and the late M P Birla and Priyamvada Birla used to control and manage the companies through the East India Investment Company, Gwalior Webbing, and Baroda Agents.

Today's CLB order regarding transfer of shares pertained to the 33,715 shares held by late Priyamvada Birla in East India Investment, which translated into 74.98 per cent in the company.

Priyamvada Birla died on July 3, 2004. Thereafter, Lodha applied to East India on July 9, 2004, for transfer of the impugned shares to his own name as executor of the estate of Priyamvada Birla.

The Lodha camp said, "The CLB today held that the register of members of the company be rectified by restoring the name of Priyamvada Birla in respect of the said shares. However, Lodha will continue to administer the estate of Priyamvada Birla, including the shares in question."

Lodha's solicitor Debanjan Mondal said, "We will consider an appeal."