Quote from Alex bobby on August 11, 2025, 5:16 AM

Billionaire Inheritance Feud Puts Spotlight on India’s Messy Family Succession

The sudden death of Indian tycoon Sunjay Kapur has set off a high-profile and deeply personal inheritance battle, drawing attention once again to the thorny issue of succession in India’s family-run business empires.

Kapur, 53, heir to the $3.6 billion automotive components giant Sona Comstar, died of a heart attack on 12 June while playing polo in Surrey, UK. Known for his connections in Delhi’s elite circles—and even a reported friendship with Prince William—Kapur’s passing shocked both the business and social worlds. But weeks later, the headlines shifted from grief to a bitter dispute over who will control his share of the empire.

Family Rift in the Public Eye

At the centre of the feud is Kapur’s mother, Rani Kapur, the former chairperson of Sona Comstar. In a letter sent to the company’s board on 24 July, Rani questioned not only her son’s death—calling it “highly suspicious and unexplained”—but also the company’s posthumous appointments.

She alleged she was coerced into signing important documents while grieving and accused unnamed parties of attempting to “usurp the family legacy.” She also urged the board to postpone its upcoming annual general meeting (AGM), scheduled for 25 July, to ensure the family retained representation in company decisions.

The AGM went ahead anyway, appointing Sunjay’s wife, Priya Sachdev Kapur, as a non-executive director.

In her letter, Rani claimed that under her late husband’s 2015 will, she was the sole beneficiary of his estate, which included a majority stake in the Sona Group. But the company strongly refutes her assertions, stating she has had “no role, direct or indirect, in Sona Comstar since at least 2019.” It has also issued her a legal notice for spreading “false, malicious and damaging” statements.

The Complex Web of Ownership

Sona Comstar is no small player—it has 10 plants across India, China, Mexico, and the United States, and ranks among India’s top auto component makers. But its ownership is layered. Public shareholders, including banks and mutual funds, hold 71.98% of the company, while the remaining 28.02% is controlled by promoters through Aureus Investments Pvt Ltd.

According to company filings, Sunjay Kapur was the sole beneficiary of the RK Family Trust, which in turn holds the promoters’ stake. Legal experts note that without public disclosure of the trust agreement, it’s unclear whether Rani Kapur has any direct claim to it.

This kind of opaque structure is common in Indian business families—and often at the root of disputes.

A Common Story in Indian Boardrooms

The Kapur dispute may be making headlines now, but it’s far from unique. A PwC survey found that 90% of listed Indian companies are family-controlled, yet only 63% have a formal succession plan. That gap leaves plenty of room for disputes when a patriarch or matriarch dies—or even before.

“In many family businesses, there’s significant ambiguity about who owns how much, and who inherits when,” says Kavil Ramachandran of the Indian School of Business. “It’s fertile ground for conflict.”

Without clear agreements, personal rivalries can spill into corporate governance, damaging both family relationships and shareholder value.

History Repeats Itself

India has seen several high-profile succession battles in recent decades.

• Reliance Industries faced a very public split between brothers Mukesh and Anil Ambani after their father, Dhirubhai Ambani, died in 2002 without a will. Their mother eventually brokered peace.
• Raymond Group, the textiles giant, became embroiled in a feud between its chairman and his son.
• The Lodha brothers, builders of Mumbai’s Trump Tower, clashed in court over control of the family firm.

In each case, shareholder confidence took a hit. “When control is concentrated and disputes break out, stock prices fall and investor perception suffers,” says Sandeep Nerlekar, managing director of the legacy planning firm Terentia.

The High Cost of Poor Planning

Succession disputes don’t just create drama—they can destabilise companies. Prolonged feuds distract from strategic decision-making, invite regulatory scrutiny, and can even lead to asset sell-offs.

“Too much water often flows under the bridge before issues can be resolved amicably,” says Ketan Dalal, an advisor to several Indian business families. “By the time lawyers and courts get involved, the relationships are fractured and the business has already suffered.”

Lessons from Families That Got It Right

Not all family businesses leave succession to chance.

The Bajaj Group—one of India’s largest conglomerates—faced internal disputes in the 2000s but eventually resolved them through court mediation. Responsibilities were mapped out between the patriarch’s sons and cousin, with operations guided by a family council.

The Godrej Group, one of India’s oldest business houses, took an even more unusual approach. In 2023, it announced an amicable split of its multi-billion-dollar empire, carefully dividing assets and responsibilities among family members without public acrimony.

These examples show that planning works best when it’s proactive, transparent, and backed by strong governance structures.

The Way Forward for Indian Family Businesses

Experts say that while cultural sensitivities often make it difficult to discuss succession openly, doing so is critical.

“Families need governance frameworks that give real authority to independent boards, not just symbolic roles,” says Nerlekar. “They should allow the next generation to take leadership roles early enough, and the outgoing generation should actively mentor them. That’s how you avoid blow-ups.”

The Kapur case, like others before it, underscores a recurring truth: in India’s family-run companies, emotional ties and corporate governance are inseparable. Without clear rules, the death of one individual can ignite battles that reverberate far beyond the family home—affecting employees, investors, and the economy at large.

Conclusion

The unfolding inheritance feud at Sona Comstar is more than just a family drama—it’s a cautionary tale for India’s corporate elite. It highlights the urgent need for transparent succession planning, formal legal agreements, and merit-based leadership. For every Bajaj or Godrej that navigates succession successfully, there are countless others that stumble into conflict, damaging both legacy and livelihood.

If Indian family businesses want to preserve both their wealth and their relationships, they’ll need to start planning for the future long before the present becomes history.

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