Priyamvada and Birlapur
Posted : July 28, 2004 at 6:20 am [IST]
I never knew Priyamvada Birla. But I knew Birla Jute Manufacturing Company (presently Birla Corporation, the flagship company of the deceased widow) and Birlapur. I grew there and had my schooling. Because of my academic achievements for that small place and my famous teacher grandfather who started the only educational institute there, Mr. RL Thirani, the chief of the company in those days knew me well. I remember of MP Birla as ‘babu’(preferred manner to refer Birlas) as once he visited Birlapur in my days. Usually, special cleaning, fresh paintings and other preparations were done for any impending visit of ‘Babu’. I found the same at Hindustan Motors where I spent the best part of my professional career.
As I was told by my friends of school, MP Birla was also famous for his tough and rough behaviour with his executives that were mostly marwaris. But then after passing out my engineering course, I hardly had any connection with BJM. I met Mr. Thirani in one lunch at Birla House. He had grown old and was loosing memory.
The latest turmoil caused by Priyamvada’s will in media reminded me of Birlapur and of some sweet memories of childhood associated with the place. As such, Birla family maintains its privacy religiously. It appears strange that the lady followed a totally non-traditional way and willed the huge property to an outsider. It certainly raises questions about the strength of the bond in relationship of a big joint family. It also lowers the prestige of the great family. But who knows what might have been the reasons? Why could not she will her property for a greater cause? For that matter, Rajasthan is the birthplace of the marwari community who must be running the major share of business in India. But Rajasthan is pretty poor on human development index. It is one of the BIMARU state. On per capita domestic product it is below West Bengal and Andhra Pradesh with Rs7,937. Percentage of population below the poverty line in Rajasthan is 15.3. Population growth rate is one of the highest. Female literacy percentage is one of the lowest at 44.3%. Water is a scarce commodity. Why can not marwaris do some thing about the state of their origin? On the same line, Priyavmada Birla could have willed her property for the benefits of the women of Rajasthan. No one would have been poorer- neither Birlas nor Lodhas. But Priyamvada would have created a history of sort and become immortal.
- Indra
Category: Religious/Social issues |
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Late Priyavmada Birla has not willed her property only for the benefits of the women of Rajasthan, but she has willed her property for the benefit of all the people of India! She has created history of sorts because this is the largest charity ever created and is worth approximately 5000 crores as on 2006.
Late M.P.Birla and Late Priyamvada Birla were a childless couple and as such after their demise, they wanted their entire assets to be given to charities so that the needy, the deprived, and the downtrodden sons and daughters of India can be helped and thereby their future may be made brighter. They wanted to give food to the hungry, clothes to the naked, shelter to the homeless, education to the uneducated, besides sponsoring outstanding individuals and research activities from the fields of Commerce, Arts, and Sciences. They did not have any children, but they embraced all the children of India as their own sons and daughters! What a great and noble thought! To give physical form to their thoughts, they executed mutual wills in 1981. In 1982, they executed another set of mutual wills, which revoked their earlier mutual wills of 1981, by virtue of which they passed on their entire corporate assets to these five charitable trusts.
The five charitable trusts are:
1. MP Birla Trusts.
2. Priyamvada Birla Trust.
3. Priyamvada Birla Fund.
4. Priyamvada Birla Kosh.
5. Priyamvada Birla Nidhi.
Due to a cruel turn of fate, MP Birla breathed his last on 30th July 1990.
After the necessary Hindu rituals were completed, Late Priyamvada Birla on 10th September 1990 gave directions in respect of MP Birla Trust under clause 6(b) and made nominations of beneficiaries in respect of her four trusts under clause 7(a) of the trust deeds in favour of three named public charitable institutions.
The three charitable institutions are:
1. MP Birla Foundation.
2. Hindustan Medical Institution.
3. Eastern India Education Institution.
In terms of the said nominations made after the demise of Late MP Birla, the assets of the five trusts estimated at Rs.2400 crores stood settled for the benefit of the above mentioned three charitable institutions. In the entire history of India, such a noble and philanthropic act of such magnitude is without any precedence. They have created the largest charity which was worth Rs.2400 Crores as in the year 2004, which by now in 2006 must have become more than Rs.5000 Crores.
Nine years later, on 15th April 1999, Late Priyamvada Birla supposedly dissolved all the five trusts and just three days after, on 18th April 1999, she executed her will by which she bequeathed all her properties including the estate of MP Birla to the chartered accountant of their company, R.S.Lodha and after him his son. Besides being the company chartered accountant, R.S.Lodha was also a trustee of MP Birla Foundation, Hindustan Medical Institution, and East India Education Institution.
Late Priyamvada Birla breathed her last on 3rd July 2004. After her death, R.S.Lodha moved the court to get the will of Late Priyamvada Birla probated. The Birla family challenged the application for probate and the matter is now under the examination of the probating court at Kolkata.
Shri Rajendra Prasad Pansari, a chartered accountant by profession and an employee of MP Birla Group since 1977, heard these news and was stunned! He was shocked because he was a close associate of Late MP Birla and Late Priyamvada Birla. When the mutual wills of 1981 and 1982 were made, he was consulted and he had taken part in the discussion with Late MP Birla. In 1988, when the five mutual and reciprocal trusts were formed, he was consulted in the matter of drafting of the said deeds and was involved in the discussion relating to formulation of the terms and conditions of the five trust deeds. He was also a witness to the mutual and reciprocal agreements between Late MP Birla and Late Priyamvada Birla in regard to the five trusts. He was also a formal witness to the deeds of the five trusts. He was also a witness to the instrument of nominations of the beneficiaries of the five trusts. He was also a witness to the deed of appointment of trustees of the five trusts. He was also the honorary secretary of MP Birla Foundation, Hindustan Medical Institution, and Eastern India Education Institution. He knew that the said five trusts were irrevocable and smelled something fishy in the whole matter. He made enquiries which revealed to him that R.S.Lodha had criminally conspired with Shiva Nath Prasad, who is also a trustee in the five trusts, and with Dr. V.GauriShanker who is also a trustee in three out the five mutual trusts.
All the three persons had attempted to create false evidence to show that the five trusts stood revoked and dissolved during the lifetime of Late Priyamvada Birla herself. He also found out that R.K.Choudhury, one of the trustees in the three out of five trusts was not even aware of the alleged revocation/dissolution of the five trusts by Late Priyamvada Birla during her lifetime. So since the whole picture was extremely fishy and being a loyal and faithful employee of Late MP Birla and Late Priyamvada Birla, Shri R.P.Pansari filed a criminal complaint for offences under Section 120B R/W 406, 420, 467, 417 and 204 of the Indian Penal Code against R.S.Lodha, S.N.Prasad, Dr. V Gaurishanker and Sushil Kumar Daga.
Alleged criminal R.S.Lodha challenged the criminal complaint in every court right from the Magistrate’s Court to the High Court to the Supreme Court. The entire judicial hierarchy refused his challenge and now he has to face trial as a criminal in a criminal court.
Now it is no more an issue of bequest under a Will but an issue of criminal breach of trust through a Will. It is no longer a claim under a Will but it is actually now a crime through a Will.
The legal position today is that undoubtedly all the assets of
Late M.P.Birla and Late Priyamvada Birla are vested in charity and belong to the people of India and not to any individual.
Posted by: Rajen Jani at April 5, 2006 @ 1:46 pm
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