In a relief to R S Lodha, the Company Law Board on Monday dismissed a petition seeking investigation into who controls M P Birla flagship company Birla Corporation.
Delivering the order on a petition filed by some shareholders, CLB Principal Bench said that since the controlling interest in the company was still with the estate of late Priyamvada Birla, wife of M P Birla, there was no need to order an investigation.
"I find that the estate of the late Priyamvada Birla, controlling majority of the shares in the company, is intact and that the said estate has not brought about any change in the composition of the Board of Directors of the company.
"... Thus, on overall appreciation of the facts of this case, I find that no case has been made out to order an investigation," CLB chairperson S Balasubramanian said while dismissing the petition filed under Section 247 and 250 of the Companies Act.
On another petition, alleging "oppression and mismanagement" by the current management, the CLB listed the matter for hearing on August 17.
After Priyamvada's death in July 2004, Lodha, a Chartered Accountant and a Director on the Group, had applied before Calcutta High Court for grant of probate in respect of a Will stated to have been executed by her bequeathing her entire estate -- estimated to be worth a whopping Rs 5,000 crore (Rs 50 billion) -- in his favour and that he had also been appointed as the executor of the said Will.