Rahul Bajaj enters in-principle agreement with Shishir

02 Sep 2005

The Bajaj family seems to be heading towards some agreement over the issues it was wrangling over the ownership of companies in the Bajaj group. The settlement however, has been delayed due to the tax implications.

Yesterday, Rahul Bajaj, chairman of Bajaj Auto has said that he has reached an in-principle agreement with his younger brother, Shishir Bajaj.

According to Rahul Bajaj, "The family settlement has been made, but some issues relating to capital gains tax that were delayed are in the process of being resolved," he said on the sidelines of 'Siam annual convention'.

He added, " We will pay Shishir Bajaj Rs180 crore for his stake in Bajaj Auto and Rs45 crore to a charity he controls," he said and added "Mr Shishir Bajaj will control Bajaj Hindustan Ltd and Bajaj Consumer Care."

The younger Bajaj reportedly holds a 5.7-per cent stake in Bajaj Auto, while Rahul Bajaj has a 55-per cent stake in the Shishir Bajaj-managed Bajaj Hindustan.