Priyamvada's assets have little charity

KOLKATA: Contrary to claims of Birla family that late MP Birla and her deceased wife Priyamvada had left their assets and properties for charity, it now appears that only a small portion was meant for philanthropic purposes, while members of Birla family were the prime beneficiaries.
This becomes apparent from the five trusts that were constituted by MP Birla and Priyamvada in February 1988 to manage and operate their assets and properties.The trusts include — MP Birla Trust, Priyamvada Birla Trust, Priyamvada Birla Fund, Priyamvada Birla Kosh and Priyamvada Birla Nidhi.
Trust deeds, copies of which are in TOI's possession, show a sum of Rs 37,000 per annum was kept for charitable purpose.
The content of the five trust deeds show that they were more in the nature of private trusts rather than charitable trusts and the sole beneficiaries were either M P Birla or her wife Priyamvada till they were alive. Besides, the trusts were revocable.
Interestingly, the Birlas themselves, through RP Pansari, have submitted the trust deeds before the court and claimed that they were irrevocable and the assets and properties were meant for charity. Pansari submitted before the court that there was an oral agreement between MP Birla and Priyamvada at the time of execution of trust deeds that though the deeds were stated to be revocable, but their actual intention was to make it irrevocable.
The trust deeds state that the settlor (MP Birla or Priyamvada) may at any time in his/her lifetime or by will revoke and/or modify all or any of the trusts powers or provisions. The deeds were prepared in February 1988 with R P Pansari as witness.
But besides the deeds, it is the nomination of beneficiary(ies) by Priyamvada Birla of their assets and properties that makes an even more interesting read. Priyamvada Birla nominated the beneficiaries of her trusts as well as issued directions on utilisation of MP Birla Trust fund.
Priyamvada Birla nominated the beneficiaries in April 1990 after the death of her husband, with RP Pansari as witness.
She said that it was her wish and desire, which is only a reflection of the wish and desire of her late husband, that trustees of her trusts should see to it that persons with competence, ability, professional skill and honesty and integrity are inducted in the BOD and senior level management of different companies under the management whether they belong to the family or not.
The trustees shall also see that suitable persons are selected and appointed as chairman and/or VC of the said companies. She desired that Birla Jute and Industries (now Birla Corporation) should always remain a separate company.
She said it is her desire that trustees should as far as possible continue to carry out charitable and public religious activities which her late husband used to do. On MP Birla groups shareholding in Pilani Investment, her intention was to transfer the shares to GP Birla and/or CK Birla. Her wish was to transfer shares of Jiyajeerao Cotton Mills to SK Birla and of Indian Smelting and Refining Company Ltd to GP Birla and/or CK Birla.