Hikal ownership row: Company accuses Baba Kalyani of selectively leaking Vagul's letter  

The row erupted afresh after Baba, the patriarch of the diversified Kalyani group led by its flagship Bharat Forge, on January 14 alleged that Sugandha and her husband Jai Hiremath suppressed the content of the letter by N N Vagul.
Baba Kalyani
Baba Kalyani
Updated on
3 min read

The ownership battle for the chemicals firm Hikal, controlled by the family of Sugandha Hiremath, sister of industrialist Baba Kalyani, and partly owned by a Kalyani Investments, took a new turn on Thursday. Hikal denied all the allegations made by the firm controlled by Baba Kalyani in an exchange filing earlier this week. The filing, in turn, accuses Baba of selectively leaking information from a letter written by the late N. Vagul to the brother-sister duo.

Navi Mumbai-based Hikal, which is engaged in pharmaceuticals, biotech, agrochemicals, and specialty chemicals since 1988, is publicly traded. It is controlled by the Hiremath family, with nearly 34% owned by Kalyani Investments, a firm controlled by Baba Kalyani."

The latest row is regarding a June 16, 2023, letter written by the late N Vagul, who was the chairman of the new extinct ICICI, to Baba and Sugandha.

The row erupted afresh after Baba, the patriarch of the diversified Kalyani group led by its flagship Bharat Forge, on January 14 alleged that Sugandha and her husband Jai Hiremath suppressed the content of the letter by Vagul, after Hikal released “select” portion of the said letter earlier that day.

The ownership issue of Hikal has been pending in the Bombay High Court and a civil court in Pune for some years now.

While Kalyani Investments and Bharat Forge Investment currently hold 31.36% and 2.64% of Hikal shares, respectively, according to the exchange filing, the majority is with the Hiramaths.

Stating that Hikal wants to place on record the correct facts and deny Kalyani’s allegations made on January 14, in an exchange filing Thursday, Rajasekhar Reddy, the Hikal  company secretary said, “we are surprised by the contentions and allegations set out in Kalyani Investments (KIL) letter dated Jan 14, and the interpretation of the contents of the late N Vaghul's letter dated June 16, 2023.

“It is clear that KIL is attempting to incorrectly and wrongly interpret the letter for reasons which are not far to seek. Pertinently, if this so-called letter was such a vital piece of information or aided Baba Kalyani and/or the entities directly and indirectly under his control then KIL and/or Baba ought to have made a further disclosures regarding this letter itself pursuant to KIL's disclosure on March 24, 2023 under Sebi listing regulations. But this was not done.”

Accusing Baba of “willfully suppressing Vaghul's letter, Hikal said he has done so for the following reasons: For one, the letter was a clarification addressed by the late Vaghul after a period of 30 years from the date of the meeting that took place in 1994.

“Vaghul in the letter categorically admitted that a meeting did take place in 1994 between Baba, the late NA Kalyani (founder of the group) and his wife SS Kalyani, the late SS Nadkarni, and Vagul himself.

“The subject of the letter also categorically admits that Baba mentioned that his late father had breached an earlier understanding arrived at between themselves one year before this meeting--in 1993 which corresponds to the 1993 family agreement.

The letter that Vagul received on June 16, 2012 from the late Kalyani also clarifies that there was a brief discussion with regard to the transfer of Hikal shares back to the Hiremaths. That letter has categorically recorded and reaffirmed the understanding arrived at in the 1994 meeting.

Since the June 16, 2012 letter encloses the 1994 family settlement understanding and is exhibited in the pending proceedings filed by Hikal before the Bombay High Court, it is only correct for us to have submitted the 2012 letter along with the family settlement, Hikal secretary said.

“Given these facts, it is reiterated that there is no willful suppression on our part or that we are liable to be prosecuted,” the filing concludes.

The Baba-owned company had on Jan 14 said the Hiremaths have deliberately suppressed a letter by the late Vaghul dated June 16, 2023 addressed to both Baba and Sugandha.

 “The alleged claim made by the Hiremaths in connection with the Hikal shareholding by us is currently sub-judice and no reliefs have been granted so far by the Bombay High Court to the Hiremaths in this matter,” the Kalyani statement had said.

 “The wilful suppression of this letter of Vaghul by the Hiremaths is done with the sole intention to create a false market in the securities of our company and also of Hikal, and this constitutes a serious offence under Sebi (prohibition of fraudulent & unfair trade practices relating to securities market) regulation 2003.

“Our company will be taking separate action in this regard against the Hiremaths before the appropriate regulatory authorities, including Sebi,” it said.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com