Division Of Hinduja: By November Rs. 1 Trillion Of The Empire’s Wealth Could Be Divided


Division Of Hinduja: By November Rs. 1 Trillion Of The Empire’s Wealth Could Be Divided

November 17, 2022: A London court ruling published last week showed the family had told the court in June that “all disputes existing between them in all jurisdictions” had begun in 2019 over the family’s assets at London’s HC.

The family reached a confidential settlement on June 30, 2022, the ruling said. The division of assets among family members of the 14-billion Hinduja group could be completed by the end of this month, nearly six months after the UK’s richest family agreed to set aside a 2014 agreement, a London court ruling published last week showed.

The Hinduja family is expected to reach a settlement to split one of the world’s largest conglomerates by the end of November, people familiar with the matter told The Economic Times.

The 100-year-old conglomerate comprises 38 companies, including the flagship IndusInd Bank. Half a dozen companies of the group are listed.

The ruling, published last week, highlighted that the family had asked the court in June to end “all disputes existing between them in all jurisdictions”, including disputes that began in London’s High Court in 2019 over the Hinduja family’s assets.

The ruling stated that the family entered into a confidentiality agreement on June 30, 2022 regarding the chancery proceedings and other claims pending abroad.

An August 2022 ruling by Justice Hayden of the Court of Protection specified an end-November deadline for the division of assets and the Hinduja family agreed to a “head of terms” framework aimed at ending all related claims.

Empire, reported ET. If the Hinduja Group fails to reach a settlement by the end of this month, the matter could go back to the London court, which has become a hotbed of legal wrangling.

Multiple lawsuits have been filed around the world, including in the Swiss canton of Lucerne. In 2014, an agreement was signed by four Hinduja brothers – Srichand Hinduja, GP Hinduja, PP Hinduja and AP Hinduja – that “everything belongs to everyone, and nothing to nobody”, the legal validity of which became a point of controversy.

Apart from this, the Hinduja brothers also agreed that each brother would be the executor of the wishes of the other. While GP, Ashok and Prakash Hinduja believed that the agreement laid the foundation for succession planning for the 108-year-old conglomerate, the ‘patriarchal’ SP’s daughters Shanu and Veenu challenged it in 2019 and the matter came to light in 2020.

Both argued that their uncles had “economically squeezed” them out of the family wealth. Shanu’s son is the CEO of private SP Hinduja Bank Pvt SA, which is likely to stay with the SP Hinduja Group, according to the source cited above.

In 2013, SP acquired Banca Commerciale Lugano and merged it with the existing Hinduja entity – Hinduja Bank (Switzerland).

This entity was later rebranded as SP Hinduja Bank Priv SA. Then SP became the founder chairman of the bank.

While the SP’s daughter argues that they have been shunned by their uncles, their brothers accuse Shanu and Veenu of a “power grab”. They claim that Shanu and Vinu used SP’s ill health to manipulate them against their will, which both disputed in court.

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