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The legal dispute between Macrotech Developers, led by Abhishek Lodha, and House of Abhinandan Lodha (HoABL), headed by Abhinandan Lodha, has escalated dramatically. Recent allegations by Macrotech claim that HoABL entities have used fabricated documents to leverage the 'Lodha' brand name, leading to a fierce battle over trademark infringement and brand identity in the Indian real estate sector.
The roots of this conflict date back to 2015 when the Lodha siblings parted ways. A Family Settlement Agreement (FSA) was concluded wherein Abhishek Lodha took over as CEO of the Lodha Group (now Macrotech Developers), while Abhinandan Lodha was given ownership stakes in other ventures like Lodha Ventures and Lodha FinServ. However, the agreement's terms regarding the use of the 'Lodha' trademark have become a focal point of contention.
Abhishek Lodha maintains that the FSA explicitly prohibited Abhinandan from using the 'Lodha' brand name in any form. He emphasizes that the agreement clearly states that all brand rights, Intellectual Property Rights (IPR), copyrights, and trademarks belonging to the Lodha business would remain with Macrotech Developers.
On the other hand, Abhinandan Lodha argues that there was no non-compete clause in the agreement and that he was allowed to use 'Lodha' in conjunction with other names. He also points out that his business, HoABL, operates in a different market segment, focusing on horizontal development (plotted land development), while Macrotech is involved in vertical development (high-rise buildings).
In a shocking turn of events, Macrotech Developers has accused HoABL-linked entities of forgery. They allege that HoABL used fabricated board resolutions and a fake PAN card to obtain approvals for corporate name changes, incorporating the 'Lodha' brand name. These documents reportedly included a forged signature from an independent director, which was never authorized.
Key Allegations by Macrotech Developers:
In response to these allegations, Macrotech has formed a Special Committee of Directors to investigate the matter and take appropriate legal action. Abhishek Lodha has stepped aside from this probe to ensure impartiality.
Abhinandan Lodha has denied the allegations of forgery, stating that HoABL does not admit to any such wrongdoing. Lodha Ventures has indicated that it is internally investigating the matter and will provide a detailed response.
At the heart of this dispute is the question of whether Abhinandan Lodha has the right to use the 'Lodha' brand name. Trademark law in India is governed by the Trade Marks Act, 1999. Under Section 29(5) of the TM Act, trademark infringement occurs if a mark similar or identical to a registered trademark is used in relation to goods or services similar to those for which the mark is registered.
However, if HoABL and Macrotech offer dissimilar goods and services, Macrotech would need to prove that their trademark has a reputation in India and that HoABL's use of the mark takes unfair advantage of or is detrimental to this reputation (Section 29(4) of the TM Act).
The Lodha family's real estate business has been a significant player in India's property market. Macrotech Developers, under Abhishek Lodha, is known for its high-rise developments and luxury projects, while HoABL focuses on residential plots. This legal battle not only affects brand reputation but also underscores the importance of trademark protection in maintaining brand identity.
As the legal proceedings continue, the Bombay High Court has appointed retired Supreme Court Justice R.V. Raveendran as a mediator to facilitate a settlement between the two parties.
In a poignant move, the brothers' mother, Manju Lodha, has intervened with a plea to end the feud. She outlined six directives, including respecting each other's businesses and refraining from public spats. Abhishek Lodha has welcomed her letter, reaffirming that the 2017 agreement clearly established Macrotech's exclusive rights to the 'Lodha' trademark.
However, Abhinandan Lodha has expressed disappointment over the letter's public release, suggesting that it misrepresents the family dynamics. He emphasizes that family matters should not be settled in public, maintaining a stance that the commitments made to him must be honored.
The Lodha vs. Lodha dispute highlights the complexities of trademark disputes and family business feuds. With allegations of forgery added to the mix, the situation has become increasingly volatile. As mediation continues, it remains to be seen whether the brothers can resolve their differences or if the legal battle will persist, with significant implications for their businesses and the broader real estate industry in India.
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