Justice H L Gokhale is hearing a suit filed by a major shareholder of Balaji group, Srinivasalu Reddy, who challenged the alleged acquisition of 21 per cent shares of the company secretly in addition to the 26 per cent already offered by Mallya to Chhabria group.

The suit claimed that initially Mallya had offered 26 per cent shares to the Chhabria group which in return bought a stake in BDA Ltd (formerly BDA Breweries and Distilleries Ltd) making it a subsidiary of Herbertsons Ltd.

It was contended that acquiring 21 per cent additional shares by Chhabria group was in violation of provisions laid down by Securities and Exchange Board of India (SEBI).

Counsel for the plaintiff, F Nariman, argued that such acquisition of shares was an attempt to override the Sebiprovisions. Besides, he said, the regulatory body was of the prima facie view that the alleged transaction had violated SEBI Act.