The rift among the promoters of Godfrey Phillips over the distribution of a Rs 11,000 crore inheritance following the death of family patriarch KK Modi in 2019 has taken a new turn. Samir Modi, son of KK Modi and brother of Lalit Modi, has challenged his mother, Bina Modi, in the Supreme Court over her handling of affairs. Samir has accused Bina of not distributing funds as stipulated in the trust deed executed by his father and taking control of affairs at Godfrey Phillips against the spirit of the trust deed.
The inheritance includes the family’s nearly 50% shareholding in listed Godfrey Phillips, worth well over Rs 5,500 crore, as well as shares in other Modi group firms. The dispute arises from Bina Modi’s control of the company’s affairs. Samir is seeking the implementation of the trust deed, which envisages an equal distribution of assets among the branches of Samir Modi, Lalit Modi, and Charu Modi.
Samir Modi and Charu Modi had initially supported their mother’s decision to continue the family trust after KK Modi’s passing. Lalit Modi was the lone dissenter, seeking dissolution of the trust and distribution of the inheritance proceeds. However, Samir has now aligned with his brother in demanding immediate compliance with the distribution plan.
The trust deed proposed an equal division of the inheritance among his wife and three children, with a provision for redistribution in the event of the wife’s death. The document also allowed for the dissolution of the trust by unanimous agreement or in the presence of opposition from a member. Lalit Modi has taken legal action against his mother and siblings for not complying with his demand to dissolve the trust.
The legal battles initiated by Lalit Modi are pending in courts in India and an arbitration tribunal in Singapore. Meanwhile, Samir Modi’s case against his mother has brought the brothers together against their mother in seeking the distribution of the inheritance. The Supreme Court will now have to decide on the family’s dispute over the handling of the Rs 11,000 crore inheritance.
