UK-based Hinduja family is embroiled in a litigation over the control of the Switzerland-based Hinduja Bank, which is under the control of the patriarch Srichand Hinduja.
The fight over the control of the bank is part of the multiple litigations that the four brothers - Gopichand, Prakash, Ashok and Srichand Parmanand (SP) - are fighting in courts in UK, New Jersey and Switzerland.
The crux of the dispute is over a letter signed by the four brothers six years ago over rights of brothers in the group assets. SP, who played a key role in building the group, is disowning the letter with no legal effect whatsoever.
Clearly, the dispute among the brothers will have implications for their businesses in India. The Switzerland-based bank owns close to 5 per cent in Ashok Leyland, the truck-maker controlled by Hinduja Group's automotive unit. The value of shares is around Rs 800 crore.
The SP family has consolidated their position in the bank. Last week, SP's grandson Karam Hinduja had taken over the CEO of the bank. The 29-year old Karam's mother Shanu Hinduja is already the chairperson. SP, who currently presides over the bank, is chairman emirates. SP has another daughter Vinoo.
Karam's entry as CEO must have further irked SP's brothers. The young Karam had earlier founded a media company Timeless Media and also handled the SP family portfolio of companies.
Hinduja Bank is a small-sized bank in Switzerland with total assets of 343 million Swiss francs (Rs 2,744 crore) for the year 2018. The latest data of revenues, profits and assets is not available in the bank's website. The bank's core business centres around wealth management, trade finance and corporate advisory etc.
It is not known whether the bank has stake in other Hinduja group companies. The agitated brothers fear that the assets of SP would go to his daughters and her immediate family.
Hinduja brothers, however, said that the current litigation will not affect the group's operations ."We hope you will understand that these are private family matters which are now the subject of litigation and we cannot comment any further," states the statement issued by the brothers.