A Los Angeles court in America ordered Indian-origin tycoon Haresh Jogani to pay a hefty sum of Rs 2,000 crore to four brothers in damages after the ruling went against him in a 21-year-old land dispute. The verdict resolves a legal feud involving the division of a Southern California property empire, comprising 17,000 apartments.
The court has ordered Haresh to pay over USD 2.5 billion (over Rs 2,000 crore) in damages to his brothers – Shashikant, Rajesh, Chetan, and Shailesh Jogani. Additionally, the verdict mandates the division of shares in their Southern California property empire, which comprises around 17,000 apartments.
The Jogani brothers, hailing from Gujarat, have carved a remarkable legacy in the global diamond trade industry, expanding their business across continents such as Europe, Africa, North America, and the Middle East. Shashikant Jogani took a significant step by relocating to California in 1969, where he ventured into the gem business and real estate sector, laying the foundation for his firm. However, a legal dispute arose in 2003 when Shashikant filed a complaint detailing the events that unfolded within the family business.
In the early 1990s, faced with financial setbacks due to the recession, Shashikant brought his brothers on board as partners in the firm, including Haresh Jogani. Unfortunately, tensions escalated as Haresh allegedly ousted Shashikant from the management of the business and withheld payments.
However, the Los Angeles court ruled in favor of Shashikant, emphasizing the validity of oral agreements within the diamond trade and the Gujarati community.
Dubbed as Jogani vs Jogani, this legal battle has drawn comparisons to Charles Dickens’ famous Jarndyce vs Jarndyce probate case due to its prolonged nature and intricate complexities. The dispute revolves around allegations that Haresh breached a longstanding partnership with his brothers, leading to a contentious legal battle that has seen 18 appeals, multiple attorneys, and five judges involved, according to a Bloomberg report.
The roots of the conflict can be traced back to the Jogani family’s legacy in the global diamond trade. Shashikant Jogani initiated a solitary gem business in California in 1969, which later evolved into a collaborative effort with his brothers to expand their real estate holdings. Despite their initial success, disputes over management and ownership emerged, culminating in the courtroom drama.
The jury’s decision found Haresh guilty of violating an oral contract, despite his assertions of the absence of a formal partnership agreement.
“At the end of the book (Bleak House), there was no money, hence the name. That is not the case here. There are billions here that remain to be distributed,” the report quoted one of the attorneys representing Chetan and Rajesh Jogani.
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