New Delhi: The family feud in the Bajaj family witnessed a new development on Tuesday when the Company Law Board stayed all board meetings of the two holding companies — Bajaj Sevashram and Jamnalal Sons Pvt Ltd — and asked Rahul Bajaj to file a reply by March 30.
The order came as a major relief for the Shishir Bajaj camp, who claim that the induction of Rahul Bajaj's son Niraj and Sanjiv on the board of these companies amounted to an indirect takeover of the company by Rahul Bajaj and other family members.
Rahul Bajaj's younger brother Shishir Bajaj had moved a stay petition at the Company Law Board, saying his uncle violated an MoU between the families and is preparing to take over Bajaj Hindustan by boosting his stake in it.
Admitting the stay application, the principal bench of the CLB directed that Bajaj Sevashram and Jamnalal Sons could not hold any board meeting till the application was disposed off.
"No board meeting to be held till the petition is disposed off," CLB chairman S Balasubramanian said in the interim order. He directed Bajaj Auto chairman Rahul Bajaj to file a reply by March 30 and also asked Shishir to file rejoinders by April 15.
However, the scheduled board meeting of Bajaj Sevashram and Jamnalal Sons to induct Rahul Bajaj's son Niraj and Sanjiv was already called off.
Shishir Bajaj's son Kushagra Bajaj had also objected to Bajaj Auto buying a 1.9 per cent stake in Bajaj Hindustan from stock markets. Currently, Shishir Bajaj controls the Uttar Pradesh-based sugar company Bajaj Hindustan Ltd.
The CLB has now fixed the matter on May 28 and 29 for arguments.
The two sides are battling out in the CLB over the implementation of a family settlement proposed by former SEBI Chairman D S Mehta, which Rahul Bajaj group is opposing. As per the MOU, Shishir was to sell his stake in Bajaj Auto in return for the Rahul faction exiting from Bajaj Hindusthan at a price prevailing at the time of settlement.
Bajaj family members had earlier agreed to split their group, but the split process has not been implemented yet.
At present, Rahul Bajaj and his brother Shishir Bajaj hold 25 per cent each in Bajaj Sevashram, the main investment company that directly and indirectly controls all Bajaj Group of companies. Their cousins, Shekhar, Madhur and Niraj, hold 16.67 per cent each.
Rahul Bajaj had said on Monday that he could have thrown the Shishir Group out of the companies, but had no intention to do so. He had also denied allegations by Khusagra that efforts were being made to change the structure of the Board of Bajaj Sevasram and Jamnalal Sons.
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