CLB stays board meetings of Bajaj cos

NEW DELHI: In a relief to the Shishir Bajaj camp, the Company Law Board has stayed all board meetings of the two holding companies Bajaj Sevashram and Jamnalal Sons Pvt Ltd and asked Rahul Bajaj to file a reply by March 30.

Admitting the stay application filed by Rahul's younger brother Shishir, the principal bench of the CLB directed that Bajaj Sevashram and Jamnalal Sons could not hold any board meeting till the application was disposed off.

"No board meeting to be held till the petition is disposed off," CLB chairman S Balasubramanian said in the interim order yesterday.

He directed Bajaj Auto chairman Rahul Bajaj to file a reply by March 30 and also asked Shishir to file rejoinders by April 15.

According to Kushagra Bajaj, son of Shishir, induction of Neeraj Bajaj and Sanjiv Bajaj on the board of these companies amounts to an indirect takeover of the company by Rahul Bajaj and other family members.

However, the scheduled board meeting of Bajaj Sevashram and Jamnalal Sons to induct Rahul Bajaj's son Niraj and Sanjiv was already called off.

He had also objected to Bajaj Auto buying 1.9 per cent stake in Bajaj Hindustan from stock markets. Presently, Shishir Bajaj controls the Uttar Pradesh-based sugar company Bajaj Hindustan Ltd.

The stay application was filed in the case in which Shishir had approached the CLB in March 2003, alleging that Rahul was planning to oust him from the chairmanship of Bajaj Sevashram.