Kirloskar firms challenge SEBI letter asking disclosure of family settlement deed at SAT

On December 31, these companies stated that they were preparing to legally challenge the letter by SEBI.

Four Kirloskar companies on Saturday said they have filed an appeal before the Securities Appellate Tribunal challenging the SEBI letter asking them to disclose the deed of family settlement that was signed by members of the Kirloskar family on September 11, 2009.

In a joint statement, the Kirloskar companies — Kirloskar Ferrous Industries Ltd (KFIL), Kirloskar Industries Ltd (KIL), Kirloskar Pneumatic Company Ltd, Kirloskar Oil Engines Ltd — said they have filed the appeal before SAT challenging the SEBI letter dated December 30, 2024 wherein the market regulator advised them to disclose the Deed of Family Settlement (DDS).

On December 31, these companies stated that they were preparing to legally challenge the letter by SEBI. The markets watchdog in its letter stated that ”since the DFS is subsisting in nature, indirectly creates a restriction on the listed entities managed/promoted by the parties to such DFS, warrants disclosure, regardless of whether such listed entity is a party to the agreement or not” under relevant provisions and advised the company to disclose DFS in terms of LODR Regulations.

Kirloskar siblings, with Sanjay (Kirloskar Brothers Ltd Chairman and Managing Director) on one side and Atul and Rahul on the other, have been in a feud since 2016 over the DFS for the assets of the more than 130-year-old Kirloskar group. Rahul Kirloskar is the executive chairman of Kirloskar Pneumatic Co Ltd and Atul Kirloskar is the Executive Chairman of Kirloskar Oil Engines Ltd (KOEL).

Sanjay Kirloskar had filed a complaint for non-disclosure of the DFS. KOEL on September 11, 2023 responded to the NSE that it was ”nothing but one more of his repeated attempts to try and somehow cause KOEL to be bound by the DFS for his own ulterior motives and in furtherance of his personal vendetta with the other family members, which is now public record”.