Kolkata: Rajendra Singh Lodha's ongoing battle with Birla family appears to be proving costly as his accounting firm Lodha & Co. was today (Sep 13, 2004) removed as auditors by the Kolkata-based Dhunseri Tea and Industries Limited.

A resolution proposing removal of Lodha & Co. and appointment of Lovelock and Lewis as the company's auditor was placed before the shareholders at the Annual General Meeting of the company this morning, which was carried with requisite majority.

Dhunseri had received a notice from a shareholder, Mint Investment Limited (MIL), expressing its Opposition to reappointment of Lodha & Co. as the company's auditors for the current financial year. Only two shareholders at the meeting opposed the resolution.

Explaining the rationale behind removal of Lodha & Co as auditor, Dhunseri Tea Chairman C K Dhanuka said, "We don't want to appoint a company which is in controversy specially at a time when group companies like South Asian Petrochemicals Limited is looking for international expansion."

Earlier, while reading the resolution, company secretary of Mint Investment Limited who was present in the meeting said, "We are holding more than five per cent stake in Dhunseri Tea and we don't want Lodha & Co. to continue as auditors."

Lodha, who was bequeathed Rs 5000 crore worth of assets of M P Birla Group by the purported will of Priyamvada Birla, has been dragged to the court by the Birlas who declared that they would not allow an 'outsider' to walk away with Birla family assets.