 "Baba Kalyani")
The family dispute between Pune-based billionaire Babasaheb or Baba Kalyani and his sister Sugandha Hiremath has taken a fresh turn with the Baba faction revealing a letter from late N Vaghul, ex-head of ICICI, which had addressed the matter of Hikal shares between Sugandha’s husband Jai Hiremath and Surajmukhi Investment and Finance Ltd, a former subsidiary of Kalyani Steels Ltd.
Baba, the patriarch of the Kalyani group of companies, and Sugandha along with Jai are embroiled in a legal battle over the ownership of Hikal Ltd, which is listed on the BSE.
In a statement to the BSE, Kalyani Investments, a promoter entity, said the disclosure made earlier on Monday by Hikal based on the letter dated January 10, 2025 of Sugandha and Jai is incorrect.
“We are one of the parties to the suit filed by the Hiremaths in March 2023 before the Bombay High Court and are privy to the pleadings and documents relied upon by all parties. In this regard, we made requisite disclosure on March 24, 2023, clarifying the company’s position with regard to its shareholding in Hikal. The company holds shares in Hikal in its own right,” Kalyani Investments said, adding that it is not party to any “purported” family settlement/arrangement.
“The alleged claim made by the Hiremaths in connection with the Hikal shareholding by the company is currently sub judice and no reliefs have been granted so far by the Bombay High Court to the Hiremaths in this matter,” the statement said.
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The Baba-owned company said the Hiremaths have deliberately suppressed a letter by late N Vaghul dated June 16, 2023 addressed to both Baba Kalyani and Sugandha Hiremath. “We are enclosing a copy of late N Vaghul’s letter, which categorically and, in clear terms, denies the existence of any family arrangement entered into by and between late Dr N A Kalyani (founder of the group) and Babasaheb Kalyani concerning Hikal shares. In fact, pleadings filed before the Bombay High Court, including the written statement dated July 31, 2023 filed by Babasaheb Kalyani, very clearly brings out the fact that the issues with respect to Hikal shares were dealt with in totality between Jai Hiremath and the then subsidiary of Kalyani Steels Ltd Surajmukhi Investment and Finance Ltd, and nothing survives as far as Hikal shares are concerned,” it said, adding that the same is supported by late N Vaghul.
Kalyani Investment Company and BF Investment currently hold 31.36 per cent and 2.64 per cent of Hikal shares, respectively, according to the exchange filing.
“The wilful suppression of this letter of late N Vaghul by Mr and Mrs Hiremath is done with the sole intention to create a false market in the securities of our company and also of Hikal, and this constitutes a serious offence under SEBI (Prohibition of Fraudulent & Unfair Trade Practices relating to Securities Market) Regulation 2003. Our company will be taking separate action in this regard against Mr and Mrs Hiremath before the appropriate regulatory authorities, including Sebi,” it said.
Earlier, the co-promoters of Hikal, Sugandha and Jai, had disclosed family arrangement deeds from 1993 and 1994 to Sebi, which said late founder Neelkanth A Kalyani had entered into a family agreement with his son Baba during those years.
These agreements outlined the distribution of shares in companies, including in the flagship Bharat Forge, Kalyani Steel, and Kalyani Forge, as well as the transfer of Hikal shares held by Baba to his sister.
Hikal has uploaded these documents, including the original deeds and a letter from the promoters, on its official website for public access.
Sugandha had earlier also approached a Pune court for a partition of wealth, seeking a one-third share in the family’s assets, encompassing 250 companies and over 76 properties, citing the Kalyani family’s legacy in both listed and unlisted businesses under her brothers' control, valued at approximately Rs 1 lakh crore.
According to the affidavits, Sugandha claims she was kept in the dark about the true extent of the family’s wealth, particularly after Baba Kalyani assumed the role of karta (head) of the HUF (Hindu undivided family) in 2011. She alleged that Baba misled her into believing that the family had limited assets, mainly their family home at Kalyani Nagar, Pune.
Her concerns escalated in 2023 when she discovered efforts to take over Hikal, prompting her to investigate further.
It was during this inquiry that she claims to have uncovered the wealth held within the family’s HUF, originating from their grandfather Annappa Kalyani.
