SK Bangur Group heading for split; mediator expresses his failure to reach a solution

SK Bangur Group, which consists of listed entities like West Coast Paper Mills, Jayashree Chemicals and several unlisted entities in tea, finance and cables and home appliances, is heading for a split as the group patriarch Shree Kumar Bangur, and his daughter-in-law and grandsons have failed to reach any amicable solution. The court had directed a mediation between the two parties. The mediator has recently filed his report wherein he has expressed his failure to reach a solution. "The learned mediator has filed a report. It appears that the mediation has failed," the court has said on the suit filed by SK Bangur's grandsons--Aaryan and Ankit--claiming rights over their share of the business empire.

Judge Soumen Sen of Calcutta High Court, however, has directed the warring parties to maintain status quo in respect of both movable and immovable properties forming part of the suit. The failure comes despite assurances given to the court in January that efforts would be made to settle the issue amicably. "All the parties have assured that all endeavour shall be made before the mediator to bring a settlement between the parties," the Judge had said while requesting the mediator to conclude proceeding within sixty days.

Unlike splits seen in other Indian business families, here SK Bangur's two sons are with him and made respondents to the case but it is elder son's estranged wife, Nitya Bangur, who had separated from the joint family and moved out along with his two sons last year.

SK's elder son Virendraa looks after Jayshree Chemicals as its managing director while younger son Saurabh heads another listed entity, West Coast, as its vice chairman where her mother also serves on the board.

In January, Virendraa's two minor sons, Aaryan and Ankit demanded their share of the assets which, according to their lawyers, is valued at about Rs 3,000 crore.

With the failure of mediation by Justice Alok Chakraborty, the fight for the assets of the SK Bangur group might turn ugly as Nitya Bangur is likely to get the backing of the BM Khaitan family, that owns, among others, world's largest tea plantation company McLeod Russel and country's largest battery maker, Eveready.

Nitya Bangur, daughter of deceased Deepak Khaitan, is the sister of Amritangshu Khaitan, Eveready's managing director and has stakes in Khaitan Group's investment firm Nitya Holdings and Properties which is used to manage group holdings.

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The extended Bangur family was earlier split in 1988 among heirs like Benu Gopal who now controls the most valued cement company in the country Shree Cement, LN Bangur who owned Andhra Pradesh Paper Mills, one of India's largest paper companies, till 2011 when it was sold to International Paper of USA.

Source: DNA Money