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By EquityPandit

MARKETS

Macrotech Developers Shares Slipped 5% Amid Abhishek Lodha’s Lawsuit Against Abhidandan Lodha

Justice Arif Doctor has agreed to hear the matter on 27 January, according to Macrotech's attorney.

Shares of Macrotech Developers dropped more than 5% on 22 January in response to CEO Abhishek Lodha’s lawsuit against younger brother Abhidandan Lodha in the Bombay High Court, which aimed to stop him from using the brand names “Lodha” or “Lodha Group.”

Abhishek Lodha’s application, asked the high court to order Abhidandan Lodha to stop marketing, promoting, or selling the same goods or services that Macrotech offered.

At the same time that real estate stocks are selling off more generally, Macrotech’s stock is declining; for the second consecutive session, the BSE Realty index is down more than 4%.

The case was initially set to go before a single-judge court on Tuesday, according to the legal news website Bar and Court. However, Macrotech’s lawyer asserted jurisdiction and said the case was moved to a higher bench because the damages surpassed Rs 100 crore.

Justice Arif Doctor has agreed to hear the matter on 27 January, according to Macrotech’s attorney.

After separating their real estate business in 2015, the Lodha brothers legally resolved their differences in 2017 by signing a family settlement agreement. Under the terms of the agreement, Abhishek continued to work in the real estate sector under the name Macrotech, while Abhinandan was to find a new company that had nothing to do with real estate.

As per the lawsuit filed by Abhishek Lodha, Abhinandan began his career in real estate by selling plots before changing his name to the “House of Abhinandan Lodha.” “My company has a registered trademark, and the legal team will react appropriately in court,” said Lodha’s younger brother, Abhinandan.

Abhishek’s lawsuit claims that both brothers had a non-compete agreement that forbade Abhinandan from dealing in real estate in the Mumbai Metropolitan Area and Greater London for a set amount of time. Nevertheless, Abhinandan has not kept his word. Additionally, Macrotech accused Abhinandan of breaking another agreement on the use of the identity by infringing on the “Lodha” brand.

Macrotech Developers, a publicly traded real estate developer with properties in Bengaluru, Pune, and the Mumbai Metropolitan Area, has a market valuation of about Rs 1 lakh crore. The Macrotech Developers board will examine the December quarter’s results on Saturday, 25 January. The board will speak to analysts on 27 January.

In 2015, the patriarch Mangal Prabhat Lodha’s real estate company was split up by the Lodha brothers. While his younger brother Abhidandan Lodha owns a real estate company called House of Abhinandan Lodha (HoABL), Abhishek Lodha currently serves as the CEO of the publicly traded company Macrotech Developers.

At 1:11 pm, the shares of Macrotech Developers were trading 6.99% lower at Rs 1,067.35 on NSE.

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