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Changes in family settlement pact -- Greaves comes under Brij Mohan Thapar

K.R.Srivats

NEW DELHI, Nov. 3

IN a modification to the existing family settlement arrangement (FSA) between the Thapar brothers, the ownership and management of the Rs 700-crore Greaves Ltd will now be vested with the Brij Mohan Thapar group.

As per the original FSA entered into by the four Thapar brothers last year, Greaves Ltd was to come under the fold of the Madan Mohan Thapar group.

Sources said that the decision to modify the FSA to this effect was taken a fortnight ago and that the capital markets regulator has already given its consent for such a modification.

Accordingly, the Brij Mohan Thapar group, which includes Mr Gautam Thapar, Vice-Chairman and Managing Director, Ballarpur Industries Ltd (BILT), will now control and manage Crompton Greaves Ltd, Bilt Chemical, English Indian Clays and Bharat Starch Indus tries besides Greaves Ltd.

Greaves Ltd had reported a net loss of Rs 35.73 crore on sales of Rs 676.78 crore for the year ended March 2000.

The four Thapar brothers -- Mr Inder Mohan Thapar, Mr Brij Mohan Thapar, Mr Lalit Mohan Thapar and Mr Madan Mohan Thapar (all are sons of Late Lala Karam Chand Thapar) -- had last year entered into a FSA to reorganise the businesses under the group betwe en themselves, both in terms of ownership and management.

The Securities and Exchange Board of India (SEBI) had during the second week of October exempted the acquisition and realignment of voting rights in the Lala Karam Chand Thapar group companies from the applicability of the provisions of Chapter III of it s Takeover Code.

The capital markets regulator had in particular exempted acquirers from the requirements of making a minimum offer of 20 per cent since the transfer is occasioned pursuant to a family arrangement.

Even as there has been a modification to the FSA in respect of Greaves Ltd, sources said that there has been no other changes to the arrangement in respect of the companies that will come under the control and management of the Inder Mohan Thapar group a nd the Lalit Mohan Thapar group.

Accordingly, the Inder Mohan Thapar group will get, among other companies, KCT Coal Sales, Waterbase, India City Properties.

BILT and APR Ltd, besides other companies, will come under the fold of the Lalit Mohan Thapar group. JCT Ltd and JCT Electronics Ltd, besides other companies, will come under the control and management of the Madan Mohan Thapar group.