HC speeds up trial in Raheja family row

Written By Unknown on Jumat, 28 Februari 2014 | 22.23

MUMBAI: The Bombay HC on Thursday framed two preliminary issues to be decided first in a suit filed by real estate magnate G L Raheja against his only son. The suit filed by the senior Raheja, over 80 years old, accuses his son Sandeep of trying to "usurp" control of the Rs 11,000 crore real estate family firm.

Justice Gautam Patel said the first issue would be to decide if the suit was filed within the period of limitation, which is three years. The second issue is whether transfer of shares is hit by provisions of the Benami Transactions (prohibition) Act. The reason was because the father said he had given in 2005-06 his 44-year-old son control of 58% shares of the company to get majority control with the understanding that he would continue to remain in "ultimate control" of the company.

The father said the row arose in 2012 when his son disputed the "family arrangement". Sandeep denied existence of any such family arrangement and said he was legitimately 58% shareholder of the entire G L Raheja empire. He also said the transfer of shares was all legal and valid with several dating to the early 1990s. The HC—after being told that the senior Raheja was "old and suffering from serious ailment"—decided to accelerate the trial on the preliminary points and fixed the next date on March 20.—Swati Deshpande


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