Calcutta, Sept. 28: The Birla family has won the first round of the boardroom battle against R.S. Lodha by taking control of Jute Investment Company.

This is the first decisive development in the succession war for the MP Birla empire.

At the annual general meeting held today at Birla Building ? the headquarters of the Birla group ? five nominees of the Birla family were elected as directors of the company. Now five out of seven directors are with the Birla family.

“We could have sent a notice to them asking for the removal of directors. But we waited for the AGM,” a Birla family source said.

The MP Birla group holds 22.29 per cent in Jute Investment. The BK Birla group has 46 per cent, while GP and SK Birla own 31.7 per cent.

Traditionally, the company ? a non banking financial entity with a net worth of Rs 24 lakh ? has been managed by MP Birla and, thereafter, his widow Priyamvada Birla.

The Lodha camp, however, put up a brave front saying it was no major loss for them. “They (Birla family) are trying to destabilise the apple cart and create problems in the MP Birla group,” sources in the Lodha camp said.

Now all eyes would be on the annual general meeting of Rameshwara Jute Mills tomorrow. The MP Birla group has a larger stake of 31.26 per cent in that company. Birla family sources said they were confident to take control of this company as well.