Modi Family Inheritance Dispute: Samir Modi files lawsuit against mother Bina Modi
The ongoing inheritance dispute within the Modi family has taken a legal turn as Samir Modi, files a lawsuit against his mother.
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In a twist of events of the Modi family's ongoing inheritance dispute, Samir Modi, the late KK Modi's son, has filed a lawsuit against his mother, Bina Modi. The dispute comes from the handling of the family's staggering Rs 11,000 crore inheritance following the death of KK Modi in 2019. Samir Modi and his brother Lalit Modi recently joined forces against their mother, claiming that the trust deed should be carried out immediately. Samir Modi is executive director at Modi Enterprises, which was founded by his grandfather, Gujarmal Modi, in 1933. He is also an executive director of Godfrey Phillips India.
Sources familiar with the situation told The Economic Times, Samir Modi has accused Bina Modi of failing to follow the trust conduct executed by his father and mishandling funds. The dispute involves the family's significant 50 percent stake in Godfrey Phillips, which is valued at more than Rs 5,500 crore, as well as shares in various other Modi group companies involved in cosmetics, retail, and direct sales.
Bina Modi, the current CEO of Godfrey Phillips, is at the center of the dispute, with Samir alleging that she has taken control of the company in violation of the trust deed's provisions.
According to Samir Modi's legal representatives, the family settlement outlined in the trust contract provides equal benefits and succession rights to the family members Samir Modi, Lalit Modi, and Charu Modi. Simran Singh, founder of Sakura Advisory, stated, "Bina Modi's position is protected during her lifetime. Her role has been limited to facilitating such a settlement.
Initially, following KK Modi's death in 2019, Samir and Charu Modi supported their mother's decision to maintain the family trust during a meeting in Dubai. The only objector was Lalit Modi, who advocated for the trust's dissolution and immediate distribution of the inheritance, even proposing the sale of Godfrey Phillips.
According to sources, the trust deed proposed that KK Modi's wife and three children share the inheritance equally. If the wife dies, her share will be divided equally among the three children, ensuring that Charu, Lalit, and Samir each receive one-third of the family inheritance. The deed also provided the option of dissolving the trust and distributing the wealth accordingly.
Despite initial disagreements, the situation escalated when Samir Modi agreed with Lalit Modi's demand for immediate adherence to the distribution plan. Lalit Modi had previously taken legal action, approaching Indian courts and an arbitration tribunal in Singapore after his mother and siblings failed to agree with his request.
The legal battles initiated by Lalit Modi remain unresolved, and Samir Modi's recent Supreme Court challenge to his mother adds another layer of complexity to the already heated family inheritance dispute.
