Samir Modi alleges that his mother has not distributed funds
Indian businessman Samir Modi has challenged his mother Bina Modi over the handling of an Rs. 11,000 crore inheritance (£1 billion).
As a result, a feud among the major players of tobacco company Godfrey Phillips India has escalated.
Tensions over the distribution of the inheritance have been prevalent since the death of Samir’s father KK Modi in 2019.
Samir has gone to the Supreme Court to challenge his mother over her handling of affairs.
Samir is an executive director at Godfrey Phillips India, the flagship company of Modi Enterprises. He is also the brother of ex-IPL boss Lalit Modi.
This development has put the brothers on the same side when it comes to seeking distribution of the inheritance.
In the past, only Lalit was against his mother.
Samir Modi alleges that his mother has not distributed funds as stipulated in a trust deed executed by his late father.
He has also accused Bina Modi of taking control of affairs at Godfrey Phillips and holding onto the financial control of the company.
The inheritance includes the family’s 51% shares in Godfrey Phillips, worth over Rs. 5,500 crore (£524,000) as well as shares in other Modi group firms.
Bina Modi is currently the President of Godfrey Phillips.
A lawyer representing Samir said he wants the trust deed to be implemented.
Simran Singh, founder of the law firm Sakura Advisory, said:
“It is our case that a family settlement, for times to come, has been envisaged where in the branches of Samir Modi, Lalit Modi and Charu Modi are to be equal beneficiaries and successors to the companies and assets.
“The position of Bina Modi is protected in her lifetime. Her role has been limited to enabling such a settlement.”
Samir and his sister Charu Modi had initially supported their mother’s decision following a meeting in Dubai in November 2019.
It was decided that the family trust would continue.
However, Lalit Modi called for the dissolution of the trust and distribution of the inheritance funds. He had even proposed the sale of Godfrey Phillips to distribute the inheritance.
Bina then planned to give Lalit his share to settle the dispute.
Samir Modi has now sided with his brother in demanding that the distribution plan be complied with immediately.
Reportedly, KK Modi had proposed to divide the inheritance equally among his wife and three children before his death.
In the event of his wife’s death, her inheritance would be distributed equally among the three children, who would then pass it on to their children.
This meant Lalit, Samir and Charu would be entitled to a third each of the family inheritance.
The trust deed included provisions allowing the heirs to dissolve the trust and distribute the family wealth accordingly.
It specified that if any member objected to the trust’s continuation, it must be dissolved.
When Bina Modi and two of her children supported its continuation, Lalit Modi pursued legal action, approaching courts in India and an arbitration tribunal in Singapore when his mother and siblings did not comply with his request.
The outcomes of these legal proceedings are still pending.
Following Samir Modi’s decision to take legal action, the situation has escalated.
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