The Supreme Court has appointed retired Justice L Nageswara Rao to mediate an inheritance battle between Baba Kalyani and his sister Sugandha Hiremath. The dispute involves assets worth over ₹1 lakh crore, including significant shareholdings in Hikal Limited. Investors are closely watching the proceedings as the outcome could shift control or ownership stakes in the companies involved.
The Supreme Court has stepped into the long-standing legal conflict within the Kalyani family by appointing former Justice L Nageswara Rao as a mediator. This development comes amid a complex inheritance battle over assets estimated at over ₹1 lakh crore. The dispute involves Bharat Forge Chairman Baba Kalyani and his sister, Sugandha Hiremath, who, along with her husband Jaidev Hiremath, has been seeking the enforcement of a family arrangement dating back to 1994.
Impact on Hikal Limited Ownership
A critical component of this legal battle centers on the shareholding of Hikal Limited. The Hiremath family claims that a 1994 family arrangement mandates the transfer of shares currently held by entities linked to the Kalyani group to their side. If enforced, the Hiremaths contend their stake in Hikal would increase to 68.85%, granting them majority control. Currently, the Hiremath family and their associates hold about 34.84% of the company, while Kalyani Investment Company and BF Investment Limited hold a combined stake of approximately 34.01%.
The Kalyani faction has consistently challenged the validity of this alleged agreement, arguing that there is no enforceable document for such a transfer. The dispute also hinges on the interpretation of a handwritten note attributed to the late Neelkanth Kalyani, the father of Baba Kalyani.
Broader Asset and HUF Disputes
The conflict extends beyond Hikal Limited and encompasses a much wider range of assets. The Hiremaths have initiated legal proceedings asserting their rights as members of a purported Hindu Undivided Family (HUF) which they claim owns significant promoter stakes in major listed companies like Bharat Forge and Kalyani Steels, alongside various private firms, real estate, and financial assets. The Kalyani faction has denied the existence of such an HUF, maintaining that these businesses and properties are not joint assets subject to division. This legal struggle has resulted in numerous cases being filed across different locations, including Mumbai, Pune, Wai, and Karad.
Moving Toward Mediation
In the latest hearing, the bench led by the Chief Justice of India urged both sides to seek an amicable resolution through mediation, expressing optimism that the process could bridge the divide. Legal representatives for both families have agreed to engage with Justice Rao to begin the process. The Supreme Court has set a follow-up hearing for two weeks from now to track the progress of these talks. For investors in the associated companies, the main uncertainty remains whether the mediation will lead to a change in promoter control, shareholding patterns, or internal management, all of which could affect company governance and long-term strategy.