The ownership dispute between the Birla family and the Lodhas, who currently manage Birla Corporation could create obstacles for the deal, analyst tracking the developments said. They expect a flare up in Priyamvada Birla ?will? controversy.
After the death of Priyamvada Birla in 2004, the widow of MP Birla, her ?will? had named RS Lodha, a chartered accountant and close confidant of the family, as the heir to her entire estate which ran into $1 billion.This was hotly contested by the Birla family on the legal front. Today, the late RS Lodha?s son, Harsh Lodha, is the chairman of Birla Corporation.
The M P Birla Group has around 63 per cent in Birla Corporation. Lodha also has the support from financial institutions for running the company.