Krishna Spurns Sops, Fuels Super Cassette Feud

A feud has broken out in Gulshan Kumars family with one of his brothers, Gopal Krishna, refusing to give up control over two companies despite a sop-loaded deal offered by the late music magnates other brothers and son Bhushan Kumar.

Krishna yesterday spurned the offer to get him to relinquish control of Tony Electronics, which makes magnetic tapes, and another company Jagdamba, and has vowed to fight to the finish with his nephew (Bhushan Kumar). Charging his nephew with wanting total control of the family business, Krishna contended that after being given control of the two companies since December last, he has turned them around.

 

On the other hand, Bhushan Kumar and the others contend that Krishna has been creating problems by not supplying magnetic tapes and other components on time. The supplies are needed to manufacture audio and video cassettes, marketed by Super Cassettes India (SCI), the flagship company under the T-series banner.

Said Bhushan Kumar: My uncle Gopal Krishna is not only creating problems, but also wants to divest my mother and me of business over which he has no formal control as Tony Electronics and Jagdamba had been given to him as a friendly gesture. Krishna was reportedly offered an old factory site in Okhla, Delhi, another site in Noida sector 15 and a bungalow in the posh Greater Kailash area of the capital and told to relinquish control over Tony Electronics and Jagdamba, while retaining Gopal Soaps and Rajni Industries, makers of dhoop battis. The deal that had been offered had no muscle said Kishna, who added: I have turned around Tony Electronics and Jagdamba, which were dilapidated factory sites.... they are jealous of my success... I will not settle for the package.

Bhushan said the two companies had been given to Krishna under a friendly family settlement. He held that his mother and two uncles were also partners in Tony Electronics. Krishna countered the claim saying it was his youngest brother Kishen Kumar who had the majority stake of 60 per cent stake in the company. He, however, admits that the settlement has not been formalised, though the concerned stamp papers have been signed. Since it was a family affair, the shares of the two firms have not yet been transferred in my name.

The equity structure of flagship SCI is also being contended by the various parties. While Bhushan insists he has 95 per cent stake in the company, Krishna expressed surprise at this change in the structure. When did this happen, I have no idea.