The $14 billion feud that broke the Hinduja family

The billionaire Hinduja brothers always presented a united front to the outside world — four gun-toting soldiers who espoused the business philosophy that everything belongs to everyone.

Britain’s richest family oversaw an Anglo-Indian trading empire that lasted more than a century from their shared family homes in London, Mumbai and Geneva.

But, with the illness of Patriarch Srichand, known as SP, who suffers from dementia, a tussle has torn the family apart, including nephews and nieces, uncles, cousins ​​and grandchildren, to anyone besides had no idea.

Late last year, funds from the family, with combined assets of more than $14 billion, dried up to such an extent that lawyers brought in to act on SP’s behalf said they were seriously taking them out of state from a private hospital. Was considering relocating. -Financed one. Lawyers representing Srichand’s brother Gopichand denied that £5 million ($5.9 million) had been made available for him.

The family have now called a temporary truce, but the long-running and rancorous feud has put at stake the future governance of the Anglo-Indian Empire.

With 150,000 employees in approximately 40 countries, its assets include six publicly traded entities in India and one of India’s largest private banks, Ashok Leyland Ltd., the world’s third largest manufacturer of buses.

The story of the fight can only be told after a London court bid by Bloomberg News and others to lift the restrictions, ending years of secrecy. The judge agreed, taking the unusual step, saying that Srichand had become so marginalized that a public inquiry into the family’s behavior would be in his best interest.

At the heart of the disagreement was an agreement the brothers made eight years ago that “everything belongs to everybody and nothing belongs to nobody.”

Whatever the intended spirit of that variation on “one for all and one for all”, it was not on display in a London courtroom.

Different interpretations pit the branch of Srichand’s family, led by his daughter Veenu, against the rest. Venu insists that his uncles try to cut off his family’s side of money and decision-making, leaving him with no choice but to take control of his father’s wealth.

The brothers framed the litigation as a power grab against the long-standing wishes of the SP.

Each side accused the other of serious wrongdoing – and denied the misconduct itself – as they fought to control the court narrative. Gopichand’s lawyer himself compared this upheaval to Leo Tolstoy’s epic novel “War and Peace”.

It was a far cry from the brothers’ agreement that the family property should be jointly owned.

Bollywood also appeared at the hearing, when Gopichand sang “Mera Juta Hai Japanese” – My Shoes Are Japanese – a Hindi song from a 1950s film about a man who says his heart lives in India, Even if it came from his clothes. Other Countries.

Fighting with tears several times, he also told the judge that the four brothers were “one soul”. He recalled the conversation he had with the SP while passing through Green Park in central London.

“There was never a fight between the two of us brothers,” he said. “He told me, if I go first, take care of your daughters as if they are your own.”

But, in the weak position of SP, Venu alleges that just the opposite happened.

She said that her side of the family was deprived of income from 2014 until it completely dried up from 2018.

Venu, who rarely left her father’s bedside and was at one point accused of shouting at the hospital staff, called it a “financial squeeze”. He said that his family branch was left with no option but to use Srichand’s own resources.

In the spring of 2021, Veenu and his sister Shanu Hinduja admitted to the judge that they used the SP’s funds for their own purposes and gave up guardianship of their property and affairs. His attorney, Clifford Chance, dropped out of representing him. Clifford Chance did not comment.

Judge Hayden said the conflict of interest between the two daughters was “major” for the power of attorney to remain.

According to Gopichand’s lawyers, between 2013 and 2021, $26 million would have been spent from Srichand’s personal funds, including legal fees and money for his grandson.

In a now-deleted tweet from last year, Srichand’s grandson Karam Hinduja wrote: “The SP brothers’ philosophy is not so much ‘all for one, and one for all’, but ‘all for us, period’.” He added: “There is nothing ‘joint’ in this family.”

Gopichand has disputed this characterization.

After the verdict, Venu and Sanu were clear that a comprehensive agreement was yet to be signed between the family.

“While we are happy that the dispute over our father’s health and well-being has been resolved, a final resolution regarding the wider disputes still needs to be reached, so that we can fulfill our parents’ wishes for safety and respect. May his final years,” the two said in a statement.

A spokesman for Gopichand Hinduja said Friday’s decision has no impact on Mr. SP Hinduja’s ongoing care, on which the family is united, or any business operations. “The family looks forward to continuing a harmonious relationship in the future.”

The Vinoo side of the family denied any misappropriation of cash. According to his lawyers, funding was cut to such an extent that he had “no new money coming from extensive family resources.” So it was using money held personally by Srichand.”

Gopichand’s lawyer David Rees countered the allegations that he had tried to end the dispute by admitting the 2014 letter — a document signed by all four brothers — was no longer binding on Srichand.

That letter, which was said to have created a trust on the estate, has now effectively been torn up.

So, a pause. for now. But the question of future relationships and ownership is still up in the air.

“This is a family that has repeatedly asserted, and publicly, that their family code is liberal, liberal and open-minded,” the judge said in his ruling. “Given the complexity of the litigation in this court, it is difficult to appreciate how this principle is realized in daily life.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicate feed.)