HC issues notice on plea for dividend distribution to KK Modi family branches
This story was originally published at 19:39 IST on 22 October 2024
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NEW DELHI – The Delhi High Court has issued notices to Bina Modi and Charu Modi on Ruchir Modi's plea, seeking distribution of dividends received by the K.K. Modi Family Trust companies since 2020 to the trust and then to four branches of K.K. Modi family--Lalit Modi branch, K.K. Modi branch, Samir Modi branch and Charu Modi branch. Seeking a reply from the parties in two weeks, the high court placed the matter for hearing on Nov. 19.
The high court was hearing a suit by Ruchir Modi, son of former Indian Premier League chairman Lalit Modi, seeking a declaration that the appointment of his grandmother Bina Modi as the managing trustee of K.K. Modi Family Trust was null and void. Ruchir Modi had sought a permanent injunction against Bina Modi and her daughter Charu Modi from managing the affairs of the trust.
K.K. Modi, along with his wife Bina Modi, son Lalit Modi and others, executed a restated trust deed in 2014. The trust deed consolidated the family's immovable and moveable assets into a trust, to ensure equal rights and benefits among all family branches. As part of its moveable assets, the trust either directly or indirectly holds shares in some companies.
Ruchir Modi filed an application in the high court and alleged that though several trust companies including Godfrey Phillips India Ltd. and Indofil Industries Ltd. have announced and distributed dividends, no information has been given to him on which structural level the dividend has been deposited. Ruchir Modi said that he has no information as to how the money of the trust and the trust companies were being utilised or invested.
No money has been distributed to him and his family branch since 2020, said Ruchir Modi. Bina Modi and Charu Modi are promoting only their self-interest and are benefitting to the exclusion of the petitioner and his family branch, in breach of trust and the duty of care, said Ruchir Modi. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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