Land deal of 1954 behind ruckus at NVCC AGM in 2022 in Nagpur

NAGPUR: Ugly scenes marked the annual general meeting (AGM) of Nag Vidarbha Chamber of Commerce (NVCC) on Saturday. An apex body of traders in the region, NVCC boasts to be one of the prestigious business organizations. It has been in existence since 1944.
The ruckus, whose video clips of heated exchanges as well as fisticuffs between businessmen went viral on social media, has is roots in a land deal which happened in the 1950s as a complex corporate plot also runs parallel to the story.
A panel of traders under former NVCC president and a steel businessman Dipen Agrawal had challenged the current leadership of Ashwin Mehadia, a pharma trader. Both the groups have accused each other of resorting to unruly behaviour and violence. Clips of the same scenes were circulated on social media by the two sides.
What NVCC is today was originally Madhya Pradesh Chamber of Commerce (MPCC) having its office in Civil Lines next to a branded garments showroom which was built in mid 2000s.
MPCC was housed in a 2,000 square feet building on a plot of around 40,000 square feet area. The building was leased from a retired judge and there are disputing views whether the open land was also leased or not.
MPCC is a not-for-profit company. Later, in 1954 the land was purchased by another company — Madhya Pradesh Merchant Chamber of Commerce (MPMCC) which was floated by some of business families of the region. The MPMCC then rented the building to MPCC, which later became NVCC after state-reorganisation in 1956 and formation of Maharashtra.
The rental arrangement continued between NVCC and MPMCC with the last rent being at around Rs1,500 per month, say sources from both the camps.
In 2008, the MPMCC sold its shares to an individual, Ramesh Randhad. This transferred the land and building to him. Randhad moved a court for NVCC’s eviction and won. However, eventually the NVCC entered into an agreement and left the place. In lieu of it, the chamber got an alternative land and cash Rs2.5 crore.
This is where the tiff began. A complaint was filed with the registrar of companies by the rival group that Mehadia’s Director Identification Number (DIN) was debarred, yet he became a director of NVCC and later the president. The matter went to court and lately an investigation was done from Ministry of Company Affairs (MCA). The conclusion is awaited.
The rival panel alleges that Mehadia entered into a settlement with Randhad when his very position as a director was questionable as his DIN had expired. Mehadia says he was not alone in the decision making. Over the years, Dipen Agrawal’s brother Sanjay handled the legal matters of NVCC.
The rival group again went to National Company Law Tribunal (NCLT) against alleged disqualification of some members. The chain of events finally culminated into Saturday’s showdown. The Agrawal panel walked out saying that they are boycotting elections.
Mehedia is again the president. MPCC is today held by a Randhad as an individual.