Company will be formed soon, say sources close to industrialist Anand Mahindra, the force behind the plan
Mumbai: The Rhythm House revival project mooted by industrialist Anand Mahindra will be executed by a not-for-profit company. This company will be established under section 8 of the Companies Act, 2013, which allows formation of a company with charitable objectives.
Rhythm House, which shut down in March 2016 and was replaced by a Nirav Modi jewellery showroom last year, was sealed by the Enforcement Directorate (ED) in the wake of the Punjab National Bank scam. Mr. Mahindra then floated the idea of reviving Rhythm House through crowdfunding.
After a series of discussions, which also included a meeting with Vineet Agarwal, special director, western region, ED, it was decided that a not-for-profit company would be ideal to execute the revival plans for Rhythm House. Haigreve Khaitan, a partner at Khaitan & Co, and Naveen Raju, general counsel at Mahindra group, have offered their services pro bono to put together the legal framework for the new company.
Section 8 of the Companies Act under which a company is established, requires that the Central Government be satisfied that a person or an association of persons proposing to register a limited company. This entity should have the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other point as its objectives.
The company also needs to show that it will apply its profits, if any, or other income in promoting its objectives.
“Rhythm House could be reclaimed in around a year; not-for-profit company will be set up within two months,” people closely associated with the crowdfunding plan said. Jay Shah, who heads cultural outreach at Mahindra & Mahindra, tweeted, “We will share those options when they are determined. At this point, it appears that patience will be required, but we are optimistic that a fruitful outcome could emerge in 12 months. In the meantime, we need to demonstrate continued public support to the initiative.”
The latest offer of support and expertise comes from noted architect and urban conservationist Brinda Somaya.
Others who have already backed the concept are actors Farhan Akhtar and Rahul Bose, stand-up comedian Atul Khatri and tabla exponent Anuradha Pal. Former Congress MP Milind Deora and music director Vishal Dadlani were among the early supporters of the plan.