Mumbai: The dispute between the Hiremath and Kalyani families over the control of Mumbai-based Hikal has taken a twist. The Kalyani Group, owners of Baba Kalyani-led Bharat Forge, in an affidavit filed in the Bombay High Court claimed that the ‘family arrangement’ on the stake transfer in the chemical and life sciences company was a ‘note’ by Baba Kalyani’s father, Neelkanth Kalyani, and is not sustainable before law.

Kalyani family entities own 34% of Hikal, while the Hiremaths own 35% of the company. Kalyani is the brother of Sugandha Hiremath. The Hiremaths are claiming that the ‘family arrangement’ includes the transfer of Kalyanis’ 34% stake in Hikal to them. Currently, Hikal is run by the Hiremath family.

According to the affidavit by the Kalyani Group before the court, the family arrangement of 1994 was done ‘unilaterally’ and did not ‘reflect the true understanding’ about Hikal shares. There was no ‘agreement’ regarding the transfer of shares of Hikal held by Kalyanis to the Hiremaths in the ‘note’.

In the affidavit, the Kalyani Group said that the only obligation to the Hiremath family was to facilitate the ‘buyback agreement’ of Hikal shares executed in January 1992, which came into effect in 1994. Kalyanis claim they have already transferred shares to Hiremaths as per the buyback agreement. The number of shares that were transferred as per this agreement could not be ascertained.

Kalyani Group and Hikal did not respond to ET’s queries.

Sugandha and Jaidev Hiremath had filed a suit in the Bombay High Court against the Kalyani Group, including Baba Kalyani, over the Hikal stake in March, according to a BSE filing dated March 23.

The Kalyani Group, in the affidavit before the Bombay High Court, has sought the dismissal of the case on the grounds that Hiremaths did not pursue the claims in the ‘family arrangement’ of 1994 for the past 29 years. The affidavit said by not raising the demand for the stake transfer in the past 29 years, Hiremaths have accepted that entities of the Kalyani Group rightfully held shares in Hikal.Two holding firms of the Kalyani Group – BF Investment and Kalyani Investment Company — filed two separate complaints with the Securities and Exchange Board of India on April 4 alleging that officials of Hikal colluded with co-promoters, the Hiremath family, to block a plan to raise their stake. They alleged that Hikal’s compliance officer and audit committee violated Sebi rules by acting at the behest of the Hiremath family by depriving them of their rights to purchase shares in Hikal. The Kalyani family entities have also sought a probe into alleged violations of securities laws and corporate governance norms by Hikal.