Bharat Forge's Kalyani group threatens to sue Hiremaths

The spokesperson said that the Kalyani group is contemplating legal action against members of the Hiremath family, including Sameer Hiremath and Pallavi Swadi—children of Sugandha Hiremath, Kalyani family patriarch and Bharat Forge Ltd. chairman Baba Kalyani's sister—on grounds of defamation and for allegedly interfering in the process of justice.

In the notice, the Kalyani family has accused the Hiremaths of making statements that are “false, offensive, defamatory".

“Both plaintiffs (Sameer and Pallavi) have been indulging in making malicious attempts to defame certain named family members," said the Kalyani group spokesperson in response to Mint's queries. “A legal notice to this effect has been issued to the relevant parties." 

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Queries sent to the Hiremaths remained unanswered till press time.

The latest flare-up

The latest notice from the Kalyani Group comes on the back of the Hiremaths making a court filing on 22 July, where they called the family asset dealings of Baba Kalyani “authoritarian and opaque". 

While demanding a partition of wealth, the Hiremath siblings denied Baba Kalyani’s earlier claims that he has built industries and companies with his own personal investments.

The rejoinder stated that Baba Kalyani’s refusal to part with family wealth on arguments of an absence of common male ancestor is a “classic example of the fact that even when the law has been amended to confer rights on women, it is the mindset of the society which cannot accept such rights of the daughters and their children and still deprives them of their rightful share in the property".

The dispute

The Kalyani family, led by Baba Kalyani, and the Hiremath family began fighting over ownership of shares in Hiremath-promoted pharmaceuticals firm Hikal Ltd. 

The dispute began last year after Baba Kalyani refused to transfer Hikal shares, worth over ₹1,300 crore, in Sugandha's name.

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The Hiremath's have since expanded the dispute by including assets of Kalyani Group companies including Bharat Forge, Kalyani Steel, BF Investments, BF Utilities, Kalyani Investments, and Automotive Axles.

The dispute worsened after Sameer and Pallavi, in March, demanded their share of wealth in Kalyani Group through a petition against Kalyani, his son Amit Kalyani, brother Gaurishankar Kalyani, Gaurishankar's children Sheetal Kalyani and Viraj Kalyani, and their mother Sugandha Hiremath in the Pune court.

Sameer and Pallavi have also raised concerns over the way Kalyani has been dealing with family members and the group’s assets, while demanding a partitioning of the Kalyani group’s substantial real estate assets, especially in Pune, Karad and Satara districts in Maharashtra. 

During the court hearing on 22 July, the Hiremaths claimed the Kalyani Group alone has a market capitalization of about ₹91,000 crore, of which ₹43,000 crore is the value of the stake held by the promoters, which are predominantly associated with the Kalyanis. 

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The Hiremaths want their share out of this stake and in their 22 July rejoinder the Hiremaths alleged Baba Kalyani of “perjury". 

As per a Pune Civil Court’s directive the two families were supposed to begin a court-monitored mediation process, but on Thursday the Kalyani family refused to enter any peace talks.  

“There is no question of participation in any mediation," said the Kalyani Group spokesperson, adding that it’s a “frivolous suit" and an afterthought with a “mala fide intent to defame members of Kalyani family".

He said the Hiremath siblings cannot claim status as coparceners in the Kalyani joint family.