The Supreme Court has appointed retired judge L Nageswara Rao to mediate a ₹1 lakh crore asset dispute between Bharat Forge chairman Baba Kalyani and his sister, Sugandha Hiremath. The court-ordered process gives both parties two weeks to seek a settlement, pausing related legal proceedings in the Bombay High Court to prioritize a resolution.
The Supreme Court of India has intervened in a long-standing family dispute involving Bharat Forge chairman Baba Kalyani and his sister, Sugandha Hiremath, by appointing retired judge L Nageswara Rao to lead mediation. The matter involves a massive estate valued at over ₹1 lakh crore, and the court has directed all parties to attempt a settlement within a two-week window.
Hikal Share Ownership Dispute
At the center of the legal battle is a claim regarding a 1994 family arrangement. Sugandha Hiremath initiated legal action in 2023, alleging that entities controlled by Baba Kalyani are required to transfer shares of Hikal Limited to her. According to the court filings, this transfer would increase her family's stake in Hikal from 35% to 69%, potentially shifting majority control. Baba Kalyani has disputed the finality and enforceability of this arrangement, leading to a deadlock that reached the judiciary.
Legal Proceedings and Judicial Intervention
The Supreme Court’s decision to move toward mediation comes after the Bombay High Court previously rejected a similar request on May 4. At that time, the High Court noted that Baba Kalyani had declined to participate and observed that prior attempts at resolution in various courts had not succeeded. However, the Chief Justice of India recently emphasized the need for a non-litigious outcome, urging the parties to prioritize settlement over the ongoing legal confrontation.
Broader Family Asset Claims
This dispute is part of a wider conflict within the Kalyani family, which includes other members such as brother Gaurishankar Kalyani. In 2024, additional lawsuits were filed in the Pune district court by Sugandha Hiremath’s children, Sameer Hiremath and Pallavi Swadi. These legal filings claim that various assets—including promoter holdings in major listed entities like Bharat Forge and Kalyani Steels, as well as land and jewelry—are part of a joint family estate to which they are entitled to a share.
For investors, the core interest lies in whether this family feud affects the management stability or the shareholding structure of the listed companies involved, including Bharat Forge, Hikal, and Kalyani Steels. As the Supreme Court has instructed the Bombay High Court to pause proceedings on the dismissal of the lawsuit, the market will likely watch for the outcome of the two-week mediation period. The next major update will be the report on the success or failure of these mediation efforts, which will determine whether the litigation resumes or settles.