The Birlas Wednesday argued before the Calcutta High Court that R.S. Lodha had acted totally against the ethics and norms of the profession as laid down by the Institute of Chartered Accountants of India.

Continuing arguments in the case for appointment of administrator to the Rs.50 billion estate of the late M.P. Birla reportedly bequeathed to Lodha by his wife Priyamvada Birla, senior counsel S.P. Sarkar, appearing for the Birlas, submitted before the court "the numerous instances of professional misconduct of Lodha".

He said on one hand, Lodha's firms were auditors of various M.P. Birla group companies and on the other hand, Lodha was a director in those companies.

"This conflicting interest was totally against the ethics and norms of the profession as laid down by the Institute of Chartered Accountants of India," Sarkar contended.

He said while Lodha was actively involved in the control and management of Birla Ericsson Optical Limited, Lodha and Company continued to be the auditors till July 20, 2004.

"Thereafter, Clarke Gardner Wolf and Company, an alter-ego and a benami audit firm of Lodha, were appointed auditors.

"Lodha and Company and Clarke Gardner Wolf and Company operate from the same registered office and are run by the same set of people," he alleged.

He also presented "documents" suggesting that Lodha used M.P. Birla group's wealth to benefit himself and his firms.

"How could such a person be allowed to remain in control of the M.P. Birla group, which had enormous wealth and assets?" he argued.

Sarkar concluded his arguments Wednesday and Anindya Mitra, senior counsel appearing for Lodha, began his arguments by saying that no case for appointment of administrator has been made out.

The high-profile legal battle broke out in July last year when the Birlas challenged Lodha, who was a close confidant of M.P. Birla and his wife and was found out to be the beneficiary of a Rs.50 billion estate in the latter's will of 1999.

The Birla family put up a united front. The Birla family and Lodha have been embroiled in as many as seven cases since then.

The M.P. Birla group owns the listed companies Birla Corporation, Vindhya Telelinks, Universal Cables and Birla Ericsson apart from a bevy of unlisted companies.

The total market capitalisation of all listed M.P. Birla group companies is over Rs.9 billion. Lodha is the chairman of Birla Corporation.