Family-owned businesses play a pivotal role in India’s economy, contributing over 75% to the GDP. However, despite their critical importance, these businesses are often plagued by inheritance disputes, control struggles, and family feuds. The year 2024 has witnessed several high-profile family conflicts within major Indian business dynasties, including the KK Modi, Oberoi, and Kalyani families. These disputes highlight the challenges of managing multigenerational wealth, maintaining unity, and navigating complex legal and financial matters.
KK Modi Family Dispute: Power Struggles and Broken Bonds
One of the most sensational family feuds of 2024 involves the KK Modi family, centered around Bina Modi, the 80-year-old chairperson of Godfrey Phillips India, and her two sons, Samir Modi and Lalit Modi (the former IPL chairman). The conflict began after KK Modi’s death in 2019 when his will, which outlined equal distribution of assets among his wife and three children, became a point of contention.
In February 2024, Samir Modi filed a lawsuit accusing his mother of violating the family trust and mishandling company affairs. Initially aligned with his mother, Samir soon joined his brother Lalit in opposing the trust, exacerbating tensions within the family. The dispute escalated further when Samir was removed from the board of Godfrey Phillips in July after a series of legal and physical altercations.
The conflict also saw shareholders rally behind Bina Modi, with 86.6% voting in her favor to reappoint her as the Managing Director of Godfrey Phillips. Despite mounting pressure, Bina Modi remained steadfast, vowing to preserve her late husband’s legacy. The dispute over inheritance and company control has not only tested family loyalties but also created uncertainty for investors and employees.
Oberoi Family Feud: A Battle Over Wills and Wealth
The Oberoi family saga erupted in 2024, following the death of Prithvi Raj Singh (PRS) Oberoi, the patriarch who built the Oberoi and Trident hotel chains. The family members found themselves embroiled in a legal battle over two conflicting wills—one from 1992 and another from 2021—and a codicil filed in 2022.
Anastasia Oberoi, PRS Oberoi’s daughter from his second marriage, claims the 2021 will and 2022 codicil represent her father’s final wishes. However, her step-siblings, Vikramjit and Natasha Oberoi, along with cousin Arjun Oberoi, argue that the 1992 will aligns better with the wishes of PRS Oberoi’s late father, M.S. Oberoi. The legal battle has led to tensions within the family and multiple court interventions.
In November 2024, a temporary resolution allowed Anastasia to participate in the Annual General Meeting (AGM) of Oberoi Hotels and Oberoi Properties, where she was reappointed as a director. While this truce offers a brief respite, the underlying dispute over the validity of the wills and control of the family business remains unresolved.
Kalyani Family Dispute: Sibling Rivalry Over Inherited Wealth
The Kalyani family dispute centers around Bharat Forge, a global conglomerate founded by Nilkanthrao A. Kalyani in 1961. The feud erupted after the death of family matriarch Sulochana Kalyani in 2023, with her children—Baba Kalyani, the CMD of Bharat Forge, and Sugandha Hiremath, a non-executive director of Hikal Ltd—locked in a bitter legal and corporate battle.
At the heart of the dispute is a 1994 family arrangement, which Sugandha claims obligates Baba Kalyani to transfer his stake in Hikal Ltd. to her and her husband, Jaidev Hiremath. However, Baba Kalyani has dismissed this claim, and Sugandha has moved the Bombay High Court to enforce the agreement. The conflict has escalated, with accusations of Baba attempting to acquire more shares of Hikal, which would grant him control over the company.
This dispute highlights the challenges of handling legacy wealth, with both legal and family dynamics contributing to an ongoing and complex battle for control.
The High Cost of Family Disputes in India Inc.
The family disputes in India Inc. in 2024 underline the delicate balance that family-owned businesses must maintain between wealth management and family unity. These conflicts often lead to fractured relationships, legal entanglements, and long-lasting consequences for the businesses involved. As India’s family businesses continue to contribute significantly to the economy, the outcome of these disputes will be watched closely by investors, employees, and industry stakeholders. For many of these families, the question remains: Can they resolve their differences and preserve their legacies for future generations?
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