Kapur Family Feud Escalates: Priya Kapur Takes Action Against Rani Kapur Over Trust Control

Sona BLW Precision Forgings Ltd. Ownership Dispute Escalates

Priya Sachdev Kapur, a trustee of the RK Family Trust, has issued a notice to her estranged mother-in-law, Rani Kapur, removing her from the trust. This move comes after Rani Kapur issued a notice to remove Priya Kapur as a trustee on 21 March.

Background The dispute between Priya Kapur and Rani Kapur began in July last year, when Rani Kapur opposed the appointment of Priya Kapur to the board of directors of Sona Comstar. The RK Family Trust holds a 65% stake in Aureus Investment Private Ltd, which in turn owns 28% in Sona Comstar. Priya Kapur represents Aureus on the board of Sona Comstar as a non-executive director.

Trust Structure The RK Family Trust counts four beneficial owners: Priya Sachdev Kapur, her son Azarias, and two children of Sunjay Kapur: Samaira and Kiaan. Rani Kapur was one of the trustees in the family trust. Sunjay Kapur was the sole beneficial owner of the trust before his death in June 2023.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Dispute Rani Kapur has challenged Priya Kapur's control of the promoter entity, claiming that her shareholding was fraudulently transferred to the trust in 2017. Priya Kapur has responded by stating that Rani Kapur's actions have been adverse to the interests of the RK Family Trust and that she is being removed as a trustee.

Next Steps The removed trustee, Rani Kapur, can file an application for a stay. The enforceability of the trust deed will be crucial in determining the next course of action. The dispute has significant implications for the ownership of Sona BLW Precision Forgings Ltd., valued at over $3 billion.