NEW DELHI, Jan 4: Four companies under the Kirloskar umbrella have announced that they have appealed to the Securities Appellate Tribunal (SAT) against a recent SEBI directive requiring them to disclose the family settlement deed signed by Kirloskar family members on September 11, 2009.
In a collective statement, the Kirloskar firms—Kirloskar Ferrous Industries Ltd (KFIL), Kirloskar Industries Ltd (KIL), Kirloskar Pneumatic Company Ltd, and Kirloskar Oil Engines Ltd—revealed that their appeal was filed in response to a SEBI letter dated December 30, 2024, which instructed them to disclose the Deed of Family Settlement (DFS).
On December 31, these companies indicated their intention to legally contest SEBI’s letter.
SEBI’s letter noted that the DFS remains valid and imposes indirect restrictions on the listed entities run by those involved in the agreement, thereby necessitating its disclosure under applicable regulations, regardless of whether the listed entity is directly party to the agreement.
The Kirloskar siblings have been entangled in a dispute since 2016 regarding the DFS related to the assets of the over 130-year-old Kirloskar group, with Sanjay Kirloskar (Chairman and Managing Director of Kirloskar Brothers Ltd) on one side, and Atul and Rahul Kirloskar on the other.
Rahul Kirloskar serves as the Executive Chairman of Kirloskar Pneumatic Co Ltd, while Atul Kirloskar is the Executive Chairman of Kirloskar Oil Engines Ltd (KOEL). Sanjay Kirloskar has lodged a complaint concerning the non-disclosure of the DFS.
On September 11, 2023, KOEL responded to the NSE, asserting that this move by Sanjay Kirloskar was merely another of his attempts to bind KOEL under the DFS for personal reasons and in furtherance of a personal grudge against other family members, something that has now become public knowledge. (PTI)
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