Nephew and niece sue Baba Kalyani for share in family assets

A new lawsuit has been brought against industrialist Baba Kalyani, as his nephew and niece move to claim shares in the assets of the Kalyani family. The lawsuit targets a partition of family assets, including stakes in various listed and private companies held under the umbrella of the Kalyani Group.

The nephew and niece — Sameer Jai Hiremath and Pallavi Anish Swadi, respectively — allege that Baba Kalyani has been exclusively benefiting from the family assets without accounting for their entitled share. Their claim is rooted in the assertion that they possess a stake in the Kalyani Hindu Undivided Family (HUF) assets. They further assert that Baba Kalyani has not been transparent about the status and management of these assets within the HUF.

In the petition, the duo sought that the court should instruct the defendants — Baba Kalyani, Amit Kalyani, Gaurishankar N. Kalyani, Sheetal Gaurishankar Kalyani, Viraj Gaurishankar Kalyani, and Sugandha Jai Hiremath —  to give the plaintiffs their share of the Kalyani Family HUF properties they currently possess. If dividing the properties isn't possible, the court may order a sale to ensure the plaintiffs receive their share.

The legal proceedings initiated by the duo highlight the lineage of these assets, tracing back to the origin of businesses and investments under the leadership of Annappa Kalyani, the patriarch of the joint family. According to the plaintiffs, all businesses and investments stemming from the joint family's nucleus are considered communal properties.

Key among the assets in dispute are shares in numerous listed companies and privately held enterprises, which collectively hold substantial interests in various sectors under the Kalyani Group.

The petition further seeks a full accounting of the title documents and relevant books of accounts pertaining to all immovable/movable assets set out in Annexure B and E hereto; (ii) other immovable properties owned and controlled by the Defendants which have been purchased using joint family funds and are therefore the property presently of the form Kalyani a part Family of HUF but which do not Annexure E; (iii) all movable properties including gold and jewelry, cash in hand, bank accounts, fixed deposits, shares, provident funds and all other investments and movable properties owned and controlled by the Defendants but purchased using joint family funds, therefore making it property of the Kalyani Family HUF but which do not presently form a part of Annexure A or B.

As per Annexure A of the filling.

The plaintiffs argue that the Kalyani Family HUF owns shares in valuable companies, both family-controlled and others, which have likely gained value over time. These gains should also benefit the HUF and be available for division.

In a statement, a spokesperson for the Kalyani family refuted the allegations made in the petition and termed them "factually incorrect and baseless".

"It is shocking that the petitioners filed the suit on March 20th, 2024 in the Pune Court, and inappropriately handover (sic) a copy of suit to the media first, without even servicing the suit on defendants, or even before the matter is admitted for hearing in the court. This itself shows malicious intent of petitioners, which is to defame and tarnish the image of Shri Baba Kalyani, his family and the Group," the spokesperson said, adding, "As and when the suit is served on us, we will defend our position before the court of law, including initiating appropriate civil/criminal defamation proceedings..."