Kirloskar Industries files fresh affidavit against Kirloskar Brothers
Mint has seen a copy of KIL's affidavit. Kirloskar Industries is controlled by younger brothers Atul and Rahul Kirloskar, while Kirloskar Brothers Ltd is majority owned by Sanjay Kirloskar. Kirloskar Industries owns a 23.91% stake in Kirloskar Brothers, while Atul and Rahul Kirloskar own 0.59% and 0.51%, respectively.
In 2017, Atul and Rahul Kirloskar filed a petition before the NCLT alleging “oppression and mismanagement" by Sanjay Kirloskar. The duo pleaded for the removal of Sanjay Kirloskar owing to “oppressive acts and mismanagement of the company" against the interests of minority shareholders. The petition detailed those alleged “oppressive acts" committed by the management of Kirloskar Brothers upon the minority shareholders of the company and pleaded that the board is made accountable.
In the course of the pleadings, it also alleged that funds belonging to Kirloskar Brothers have been misused to pay for family disputes. The matter has been languishing before the tribunal for over six years now. “In a last-ditch attempt to resolve the disputes, Kirloskar Industries was willing to either sell their entire shareholding in Kirloskar Brothers or buy the same from the warring brother or in the alternate, the duo was ready to the proposition that one party may quote a price and the other party exercises the option to choose either to buy or sell at that price," said the fresh affidavit by Kirloskar Industries.
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