Kalyani group feud: Baba Kalyani’s nephew, niece move to Pune court for division of assets

Sameer and Pallavi are seeking their share in the properties, which includes shares of several listed companies and private limited companies that in turn hold a major chunk of the listed companies under the Kalyani Group.

The duo have initiated legal proceedings on the grounds that they have a share in Kalyani Hindu Undivided Family (HUF) assets. They allege that Baba Kalyani has so far been enjoying the assets himself and is not being transparent about the duo’s share.

Since all these businesses were commenced and the investments were made from the nucleus of the joint family headed by Annappa N Kalyani (ANK), all these businesses and investments constituted the properties of the joint family, according to the petition.

“It is submitted that, due to the authoritarian and non-cooperative attitude of the Defendant No. one (Baba Kalyani) in managing the affairs of the joint family, differences arose between the joint family, thereby resulting into filing of certain litigations in different courts,” the petition said. Kalyani family owns and controls valuable publicly listed companies and private companies and Trusts which include Bharat Forge Ltd, Kalyani Steels Ltd and Kalyani Consultants Private Ltd.

In their suit filed in a Pune court, the duo stated that the entire Kalyani family assets and empire was created because of the efforts of their great-grandfather, Annappa Kalyani, who was a successful businessman and agriculturist.

As the head of the family with vast resources, ANK was the “Karta of and Manager of the Joint Hindu family, comprising himself, his first wife namely, Parvati Annappa Kalyani, second wife Akutai Annappa Kalyani and his son Dr. Neelkanth Annappa Kalyani”.

The suit states that ANK had invested many of the family funds in various businesses including different companies and firms.

“All such movable and immovable assets, shares, and other forms of investments made by Annappa Kalyani in his capacity as Karta, were the properties and businesses of the joint family, whether held in the name of Annappa Kalyani or in the name of any other member of the Joint Family of Annappa Kalyani. The businesses of the said Joint Family were either in the form of companies, or proprietorship concern, or partnership firms and also in the nature of shareholdings in different companies,” the suit states, adding that his son Neelkanth Kalyani actively participated in the family business.

The suit insists that everything that is now in the family pool, irrespective of the name in which it stands, is part of the HUF and hence to be considered during partition. “It is evident that ANK and NAK earned a fortune over their lifetime, and further that these monies always formed a part of Kalyani Family HUF,” the suit says.

Meanwhile, Hikal was served with a copy of the pleadings in the suit filed by promoters, Jaidev Hiremath and Sugandha Hiremath under the Specific Relief Act, 1963, in the Bombay High Court against Bharat Forge Chairman and MD Baba Kalyani, Kalyani Investment Company (KICL) and BF Investments (BFIL) which hold 34 per cent shares in the company and form a part of the promoter group of the company, and four others.

“The Hiremath family is seeking specific performance of obligations cast on BNK (Baba N Kalyani) pursuant to a family arrangement entered between BNK and his parents, whereby the shares of the company held by KICL and BFIL, both of which are under the ownership and control of the BNK group, were required to be transferred to the Hiremath family,” Hikal said in an exchange filing last year.