Companies

Fresh dispute brews in Khoday Group

Our Bureau Bengaluru | Updated on May 26, 2021

FIR claims ₹1,222 cr embezzled from group’s trust

A fresh dispute has surfaced between two factions of the family members of the Khoday Group, the country’s oldest liquor company.

A faction led by Padmanabhasa Khoday, one of the four brothers who own stakes in the Khoday Group, has filed an FIR in a police station in Bengaluru accusing his brother KL Swamy and his two sons and a finance manager of the Khoday Group of embezzling funds and assets worth ₹1,222 crore in the family’s LK Trust.

The FIR states that KL Swamy was nominated as the managing trustee of LK Trust. However, by virtue of misrepresentation and by deceiving the complainant and beneficiaries of the trust, a supplemental deed was executed in 2011 by altering the basic structure of the original trust deed without the consent and approval of the beneficiaries, the FIR states.

Among the assets listed in the FIR include 138 kg of gold worth around ₹69-70 crore and an apartment worth ₹24 crore. The FIR states that K L Swamy was entrusted with all the properties of the trust and was authorised to operate the bank accounts and was mandated to administer the trust and distribute the income of the trust in terms of the original deed.

Wrongful gain

According to the FIR, the accused have made a wrongful gain to themselves and have caused a wrongful loss to the beneficiaries of the trust. “Several rents, remuneration, profits etc which constitute the trust fund are not reflected in the accounts of the trust. No such profits are being transferred to the complainants’ account.”

It also claimed that the managing trustee had opened the bank accounts in the name of the trust without any authorisation from the other trustees and without their knowledge. An apartment in Bengaluru was also purchased in the name of the LK Trust for ₹24 crore with no resolution passed for the purchase of any such property.

The Khodays’ family consists of K L Swamy, Padmanabhasa Khoday, Ramachandra Khoday and Srihari Khoday, who passed away in 2016. The fifth brother Narayanasa Khoday parted ways with the family in 1987. The Khoday family was recently in the news following income tax raids on the offices and residences of family members. According to an official release, the group has a large land bank that is being developed into residential and commercial properties.

Published on May 25, 2021

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