Murugappa family, Valli Arunachalam end dispute: ‘Envisaged to bring amity, maintain goodwill’

The Murugappa family, on Sunday, issued a statement announcing their decision to settle the family feud between the family members after the death of late executive chairman MV Murugappan. The family feud came up after Valli Arunachalam, a New York-based scientist and MV Murugappan’s eldest daughter, had sought a board seat in Ambadi Investments Ltd (AIL). In 2020, Arunachalam had sent legal notices to the AIL management and the Murugappa family members after it was decided during an annual general meeting to not allow her a seat in AIL, the holding company of the Murugappa Group.

“The Murugappa family is pleased to announce that its members have agreed to settle the disputes and differences between the family branch of late Mr. M V Murugappan (including Mrs. Valli Arunachalam and Mrs. Vellachi Murugappan), on one side, and the rest of the family members, on the other side, which arose post the demise of late Mr. M V Murugappan,” the family said in a statement.

The Murugappa family said that the family members discussed and then concluded the terms of the arrangement among themselves at a meeting in the presence of their respective advisors. The Murugappa family and the family branch of MV Murugappan entered into a memorandum of understanding.

The family members, it said, are committed to undertake the necessary transactions within the next 90 days.

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“The family arrangement is envisaged primarily to bring about amity and maintain goodwill amongst the members of the Murugappa family, and to maintain the overall harmony within the family, in this generation, as well as in the future. The family arrangement ensures that all the issues between the members will be settled, and they are happy that they have agreed to resolve this amicably,” it said.

The terms of the arrangement are confidential. It has also been agreed upon that all legal proceedings between the family groups will be withdrawn after all the agreed steps specified in the family settlement are completed.

The family added that none of the listed companies in the Murugappa Group including, Carborundum Universal, Cholamandalam Investment and Finance Company, Cholamandalam Financial Holdings, Coromandel Engineering Company, Coromandel International, E I D Parry (India), Tube Investments of India, Kartik Investments Trust, CG Power and Industrial Solutions, Shanthi Gears and Wendt (India) are party to the family arrangements. “Nothing in the family arrangement relates to the management or control of, or grants any special rights to the parties in, any such companies,” it said.

Valli Arunachalam, alleging gender discrimination, had said that the promoters of the group were against women getting into the family business. Arunachalam had said that she and her sister, Vellachi Murugappan, were discriminated against when it comes to occupying a position on the AIL board when “male members with a lot less qualifications and experience were able to get on the board".

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