'Shareholders are being cheated': Samir Modi accuses mother Bina in latest twist to Godfrey Phillips feud

The ongoing family feud at Godfrey Phillips India has escalated, with director Samir Modi urging shareholders to be "wary of his mother Bina being on top" amid reports of the company finalising the sale of its retail arm, 24Seven.

Speaking to BT TV, Samir said shareholders felt “cheated” by the decision, which comes amid a bitter inheritance battle with Bina Modi, the current Managing Director. Both Samir and his brother Lalit Modi have opposed their mother's elevation to MD and initiated arbitration proceedings against her.

“The shareholders should see who's contributing,” Samir told BT TV. “I’ve built businesses valued at over ₹2,000 crore, and I’m bad for the company? I launched a brand that became GPI's top performer in just 55 days. Shareholders are being cheated by the shutdown of 24Seven,” he said.

GPIL’s share price dropped 4% following reports of the sale to New Shop, a retail start-up launched in 2019, operating 160 stores across 35 cities, open 24 hours a day. The deal, set to close by the end of September, hasn't been well-received, with Samir questioning its rationale.

“The market reacted negatively. Why would that happen if the decision was in shareholders' favor?” he asked. Samir also challenged the company’s priorities: “We have ₹3,000 crore in reserves, no expansion plans, no capex plans. Why aren’t we distributing it to shareholders?” He further warned that “brands take centuries to build but can fall in days or seconds.”

Despite Samir's opposition, the board had decided to exit the retail business in April 2024. In July, a Delhi court rejected his objections, clearing the way for the sale. Samir argued that 24Seven had begun generating profits and employed 1,650 people, questioning the decision to sell at a loss rather than as a running concern.

He also criticized management changes during the sale process, suggesting they lacked strategic foresight. However, Samir clarified he wasn’t against the board’s decision but believed there was a missed opportunity for a more favorable outcome.

Adding to Samir's frustration, his reappointment as Director was blocked by the Nomination and Remuneration Committee. This issue, alongside Bina Modi's reappointment as MD, will be put to a vote at the upcoming AGM on September 6, where shareholders will decide the company’s leadership future.