Usha Martin's ousted promoter BK Jhawar vouch to fight back

Basant Kumar Jhawar, former chairman and a founding promoter of Usha Martin, who was ousted from the board at the EGM last week, Monday vouched to fight back for his rights.

Jhawar, however, did not wish to reveal his cards now.

He asserted that he will do everything to prevent the alleged diversion of funds by the camp of his estranged brother Brij Kishore Jhawar in the company.

The two brothers have been tied in a number of legal disputes before various fora over control of Usha Martin, the city based steel and wire rope company.

At the EGM, Brij Kishore and his camp did not support Basant's continuation. Basant received only 32.7 per cent of the votes while 67.3 per cent of the votes went against him.

 

Usha Martin in a statement said, "The decisions of the board and shareholders for sale of steel business to Tatas are on track. The company is unable to comment on any aspects especially related to matters which are sub-judice."

"It is unfortunate that Rajeev Jhawar (son of Brij Kishore) along with persons acting in concert with him have got me removed. Even though the management headed by Rajeev had sent a resolution for my continuation to the board for consideration and approval, but at the shareholders voted against my continuation," Basant said in the statement.

They have flouted the shareholders agreement between the two families, he claimed.

The Jhawar family has been at loggerheads ever since Prashant Jhawar, son of Basant, was removed as the chairman of the company in 2017 after the principal lender to the company insisted the move.

Basant maintained that there had been fund diversion by Rajeev Jhawar who is managing director of the company.

Indicating at diversion, Basant alleged property purchase worth Rs 100 crore by Rajeev in Singapore and USD 17 million freight contract to Natcom, his shell company, at a rate 30-40 per cent higher than competition.

No immediate reaction from Rajeev or Brij Kishore Jhawar was available.