Kolkata: In obvious fallout of the battle between Birlas and their auditor Rajendra S Lodha for the control of M P Birla group, Indo Gulf Fertilizers, an Aditya Birla Group company, has decided to remove Lodha & Company as its statutory auditor.

The board of Indo Gulf Fertilizers, which met in Mumbai on Thursday (August 5, 2004), decided to cancel the company's AGM scheduled to be held on August 10, a company spokesperson said in Kolkata.

The company in a communication to the stock exchange has also said that the AGM would be held before September 30. Incidentally, one of the resolutions to be considered at the August 10 AGM pertained to the reappointment of Lodha & Co as the statutory auditor of the company.

The spokesperson said that the decision to cancel the AGM was taken because the board wanted to a take a view on Lodha & Co continuing as statutory auditor of Indo Gulf Fertilizers in the wake of issues raised over the will of Priyamvada Birla.

The move by Indo Gulf Fertilizers comes only five days after Lodha & Co was voted out as branch auditor of Hindalo, another Aditya Birla Group company, at its AGM in Mumbai.

The third Aditya Birla Group Company, which has Lodha as its auditor, is Grasim but its AGM was held before this fight between Birlas and Lodha erupted last month and where Lodha & Co was re-appointed as statutory auditor.

But there are indications that the company may consider convening an Extraordinary General Meeting to oust Lodha from there too.

Birlas have already challenged Lodha's claim over the Rs 5000 crore assets of the M P Birla group on the basis of the purported will of Priyamvada Birla, widow of M P Birla who died on July 3.

Six of the Birla family members have filed objections in the probate section of the Calcutta High Court where Lodha has submitted the purported will of Priyamvada Birla for its legal authentication.

On the other hand, Lodha has challenged the locus standing of four of the Birlas, K K Birla, B K Birla, G P Birla and Yashovardhan Birla, for challenging the probate process.

The matter would come up for hearing before the Calcutta High Court on August 25.The two remaining objections from the Birla side were filed by two sisters of M P Birla, Laskhmi Bai Newar and Radha Bai Mohta. Birlas have questioned the authenticity of the purported will, by which the entire assets were bequeathed to Lodha, arguing that during their life time both M P Birla and Priyamvada Birla wanted to give it to charities.

Lodha, who was an auditor in the M P Birla group, one of the seven Birla entities, was considered very close to Madhav Prasad Birla during his life and after his death in 1990 he helped his widow, Priyamvada Birla, in running the affairs of the company since the couple had no issues.

Lodha later rose to become co-chairman of the company five years ago and has been running the affairs of the company in recent times.