Dispute over control far from resolved despite compromise
HYDERABAD: The fight for control of the Hyderabad-based Sanghi Group of Industries is far from over despite the warring Sanghi brothers agreeing to reach a compromise to settle their dispute.
The four brothers — the older ones, Anand Sanghi and Sudhir Sanghi, and the younger ones, Ravi Sanghi and Girish Sanghi — had last week agreed on a compromise and conveyed their decision to the Company Law Board (CLB). The two older brothers Anand and Sudhir teamed up and took on the younger ones Ravi and Girish for the control of the Rs 2,000-crore group.
Anand’s son Amit Sanghi, who is one of the directors in the group, said, “We have been asking them (Ravi and Girish) to pay us Rs 1,500 crore to leave the business to them. The other option is to divide the assets. Either of the two options is acceptable to us.” However, the older brothers are not willing to remain just shareholders in the group. “Either we should have our own companies or leave it to them for a consideration,” Amit added.
Last week, after the brothers agreed to a compromise, the CLB issued an order, a copy of which is with DNA Money. The order said, “Compromise talks held. The parties have tentatively agreed that Anand and Sudhir Sanghi will go out of the company on receipt of proper consideration for their 25% share in all companies.”
The CLB told the Sanghis to prepare a list of shareholders, liabilities and pending cases to initiate the process. The lists have to be submitted within 15 days. The CLB will take the matter up in November. “We told the board clearly that the compromise will be subject to Ravi and Girish Sanghi paying the other two to leave the group,” Amit said.
The group has two listed entities — Sanghi Industries and Sanghi Polyesters — and several closely-held companies including a Telugu daily Vartha. It also has real estate assets of over 2,500 acres in Sanghi Nagar, near Hyderabad, which is the group’s most valued property.
According to sources, a resolution may take longer. “In these market conditions, it will be extremely difficult for anyone to raise Rs 1,500 crore and pay off the other party. The elder brothers know the financial condition of the younger ones,” a source said.
