The battle for control of Finolex Group intensifies as Pune police started investigating facts around the board meeting of the holding company Orbit Electronical Pvt Ltd which was held on March 31, 2016. It was in this meeting the group founder Pralhad Chhabria claimed to have transferred 70.4% control of Finolex Group to his son Prakash Chhabria through a gift deed.

In February, the Pune first class judicial magistrate ordered the investigation by recording voice sample of Meena D'Sa, a senior member of Orbit, in the presence of a forensic expert. Deepak Chhabria, son of group co-founder Kishan Chhabria and Prakash's cousin, had filed a petition at Pune's Chaturshringi police station a year ago, alleging that the board meeting never happened and the gift deed was forged by Prakash faction. He had also submitted the voice recording of March 31, 2016, to the police, in which D'Sa allegedly told him that no other board member was present for the meeting.

The two listed companies of the group -- Finolex Industries (FIL) and Finolex Cables (FCL) -- are together valued at over ₹16,000 crore in the stock market. Prakash is the chairman of FIL and Deepak heads FCL.

Deepak Chhabria claimed in the petition that the original will made by his uncle Pralhad Chhabria had put down an almost equal stake (54:46) in Orbit between two founding families (of Pralhad and his brother Kishan). He also alleged that D'Sa who spent decades working at the group conspired with Prakash and other Orbit directors to cook up the records relating to a board meeting on March 31, 2016.

The Pune court observed in its order, "It is shown in the minutes of the board meeting dated March 31, 2016, signed by Prakash Chhabria that the complainant (Deepak) was also present for the meeting and approved of the transfer. It is, however, evident from the audio recording between the respondent (D'Sa) and the complainant that such a board meeting never took place. The complainant was present for the board meeting at the venue but left after the conversation with the respondent as no other director was present. It is, therefore, important to determine who actually attended this meeting and whether the meeting itself took place or not for which the voice samples of the respondent are necessary to ascertain the genuineness of the conversation that took place between the respondent and complaint."

According to the Prakash faction, Deepak had full knowledge of the gift deed as it was passed in a board meeting in the presence of Pralhad Chhabria, Deepak, Prakash and other independent directors. However, it is long after Pralhad's death in 2016, Deepak is contesting the transfer of shares for gaining control of FCL, they said.

"The disputes were initiated by Deepak on the demise of Finolex Group Founder in 2016 as he now wanted to control FCL. It is a question mark as to why no issue was raised by him before that. He has failed to secure any reliefs from courts/tribunals till date," said an official from Prakash's side.

Finolex Industries share

Pune police probe Finolex Group board meeting where ownership transfer took place