INSUBCONTINENT EXCLUSIVE:
MUMBAI: The family dispute at the Rs 15,000-crore Finolex Group has taken a new twist as cousins Prakash Chhabria and Deepak Chhabria have
accused each other, in separate exchange filings, of scheming to gain control of Finolex Cables Ltd (FCL).
Prakash is the biggest
Prakash Chhabria controls about 78 per cent of Orbit Electricals while Deepak Chhabria owns a 8 per cent stake.
Finolex Cables alleged in a
March 26 letter that Prakash Chhabria had submitted fraudulent documents to the board of Orbit Electricals in a bid to gain control of the
On behalf of Prakash Chhabria, Orbit Electricals denied all allegations in a stock exchange filing on Wednesday.
The gift deed related to
the stake of the late Prahlad Chhabria passing on to his son Prakash Chhabria was not valid due to mismatched signatures, non-registration
of the document and inadequate stamp duty, Finolex Cables had alleged
The letter also said the relevant minutes of the Orbit Electricals board meeting had been concocted and the transfer of shares to Prakash
the records of Finolex Cables
Orbit Electricals said in its exchange filing
Orbit said the matter can only be decided by the courts based on the evidence available.
Orbit Electricals holds a 32 per cent stake in
Finolex Cables, according to BSE data
Prakash Chhabria also holds 15 per cent in Finolex Cables through Finolex Industries and direct stakes in Finolex Cables individually and
through family members.
Prakash Chhabria had filed an appeal in the Bombay High Court last year against the continuance of Deepak Chhabria
as executive chairman of Finolex Cables.
The dispute appears to have been sparked by resolutions at a Finolex Cables annual general meeting
Prakash Chhabria has alleged that Deepak Chhabria, as an authorised representative of Orbit Electricals, voted in favour of his own
re-appointment as executive chairman of Finolex Cables
Deepak Chhabria acted contrary to the legal framework as an authorised representative of Orbit Electricals, his cousin said.
