Birla Corporation, the flagship of the MP Birla Group, on Tuesday said there would be no change in the way the group companies were being run.
"Over the last five years, all decisions were taken by Birla Corporation Chairperson Priyamvada Birla and Co-Chairman RS Lodha. Now, everything will be referred to him alone," KC Mittal, managing director of the company, said.
The Lodha family refused to face the media today but sources close to them said, "This is simply a continuation of the status quo."
Solicitors in Kolkata said the legal challenge by the Birla family against the will of Priyamvada Birla could be filed only when the will was placed to be probated.
Almost all the assets were held through charitable trusts, which Priyamvada Birla directed to perpetuate to the memory of her late husband MP Birla through schools, hospitals and other institutions. Priyamvada Birla held virtually no shares or wealth in her name. She had gifted her personal effects to family members.
RS Lodha has been the co-chairman of the trusts for nearly five years now. "He was chosen by Priyamvada for this task as co-chairman and not a single family member dared to challenge this as long as she was alive," sources said.
"MP and Priyamvada sought to ensure that the other family members did not try to split the group. They also wished to ensure that the group's profits were used for charitable works. The present arrangement was chosen by Priyamvada as the best option," said the source.
MP Birla died in 1990, when RS Lodha was already a known face in the group. Priyamvada passed away on July 3 this year.
"She wanted the shareholdings and wealth to be kept undivided, which would not have been possible if it had gone to the various family factions," the sources added.
