Macrotech shares crack 5% amid trademark tussle between brothers Abhishek and Abhidandan Lodha

Moneycontrol had accessed the petition by Abhishek Lodha on January 20, where the high court asked to restrain Abhidandan Lodha from selling, advertising or marketing same goods or services offered by Macrotech.

Shares of Macrotech Developers are lower by over 5% on January 22, after CEO Abhishek Lodha moved lawsuit in Bombay High Court against younger brother Abhidandan Lodha, seeking to restrain him from using the brand name 'Lodha' or 'Lodha Group', CNBC-TV18 reported.

Moneycontrol had accessed the petition by Abhishek Lodha on January 20, where the high court asked to restrain Abhidandan Lodha from selling, advertising or marketing same goods or services offered by Macrotech.

The fall in Macrotech's share is coinciding with a wider selling in real estate stocks, with the BSE Realty index down for a second consecutive session, falling by over 4%.

Legal news website Bar and Bench reported that the case was to initially come up before a single-judge bench on Tuesday, but was moved to a larger bench, citing jurisdiction, as Macrotech's Advocate argued that since damages involved exceed Rs 100 crore.

The website quoted Macrotech's advocate that Justice Arif Doctor has agreed to hear the matter on January 27.

The dispute dates back to 2015 when Lodha brothers separated the real estate business, and later formalized it through a family settlement agreement in 2017. According to that pact, Abhishek stayed in the real estate business under Macrotech brand while Abhinandan was to look at a new business, unrelated to real estate.

The lawsuit by Abhishek Lodha has said that Abhinandan entered the real estate business, dealing first in plots, and then promoting his company as the 'House of Abhinandan Lodha'. Younger Lodha sibling Abhinandan said his company has a registered trademark and the legal team will give an appropriate response before the court.

Abhishek's petition said both brothers had a non-compete clause preventing Abhinandan from entering in real estate business in the Mumbai Metropolitan Region and Greater London for certain periods. Yet, Abhinandan has not complied with these agreements. Macrotech also alleged that Abhinandan has infringed on the trademark 'Lodha', violating another agreement over the use of the identity.

Bar and Bench reported that as legal remedy, Macrotech has sought that Abhinandan's entities be permanently restrained from using 'Lodha' or similar trademark. The company is also seeking an injunction against offering services similar to those of Macrotech. On top of it, Macrotech has demanded Rs 5,000 crore in damages over the alleged infringement.

Macrotech Developers is listed real estate developer with presence in Mumbai Metropolitan Region, Pune and Bengaluru, and a market capitalisation of over Rs 1 lakh crore. The board of Macrotech Developers will consider December quarter results on Saturday, January 25, and speak to analysts on January 27.

Back in 2015, the Lodha brothers had split the real estate empire of patriarch Mangal Prabhat Lodha, with Abhishek Lodha running the listed company Macrotech Developers, and younger brother Abhidandan Lodha operating a real estate company by the name of House of Abhinandan Lodha (HoABL).

Jefferies had on January 20 issued a Buy call on Macrotech, stating that its underperformance to Realty Index is an entry opportunity for long-term investors, and the company has delivered a 25% sales growth over nine months in FY25.