Rahul Bajaj takes brother to court

15 March 2007

Mumbai: The Rahul Bajaj group, acting through Bajaj Sevashram, has filed a case in the High Court against Shishir Bajaj and son Kushagra, alleging ''breach of trust'' and claiming a compensation of Rs600 crore.

The suit is a result if Kushagra''s refusal to acknowledge a verbal agreement reached between the two groups after two meetings held in 2005-06.

Rahul Bajaj says the final settlement between the two groups was to be based on three things — an MoU of the family settlement, family mediator DS Mehta''s decision and two meetings held between Niraj Bajaj and Kushagra Bajaj.

According to Rahul Bajaj, in the fourth and final meeting it was decided that a mirror image company of Bacchraj & would be created by transferring the Bajaj Hindusthan shares and Shishir would hold a 78-per cent stake in that company.

Bajaj said Kushagra denies that the discussion ever took place as the minutes of the two meetings were not recorded the Shishir Bajaj faction has subsequently denied any such discussion, prompting Rahul and other members of the faction to take the matter to court.

The Shishir faction wants to go by the original MoU and DS Mehta''s decisions. With both parties taking a hard stance on the matter, the settlement issue is unlikely to be resolved even at CLB hearing in May 2007.