Kirloskar Corporations Clash with SEBI Over Family Settlement Disclosure

Four Kirloskar companies plan to challenge a SEBI directive to disclose a family settlement deed signed in 2009. The companies argue that the deed does not bind them or impact their operations. A family feud among Kirloskar siblings has persisted since 2016 over this 130-year-old group's assets.

In a developing legal confrontation, four companies from the Kirloskar Group announced on Tuesday their intention to challenge a directive from SEBI, India's securities market regulator. The dispute stems from SEBI's demand for disclosure of a 2009 family settlement agreement, which the companies argue has no binding effect on them.

The Kirloskar companies—comprising Kirloskar Ferrous Industries Ltd, Kirloskar Industries Ltd, Kirloskar Pneumatic Company Ltd, and Kirloskar Oil Engines Ltd—assert that the deed of family settlement (DFS) neither binds them nor imposes restrictions or liabilities. Despite the ongoing civil court case on the matter, SEBI has insisted on its disclosure under regulatory requirements.

The longstanding feud between Kirloskar siblings Sanjay, Atul, and Rahul, which began in 2016, revolves around the DFS concerning the family's 130-year-old business. With the companies preparing for legal action against SEBI's letter, this corporate saga is set to continue amidst allegations and legal complexities.

(With inputs from agencies.)