A bitter family feud has erupted in the RS 30,000 crore Sona Group after the sudden death of chairman Sunjay Kapur. His mother, Rani Kapur, alleges coercion and exclusion from key decisions, including the appointment of daughter-in-law Priya Sachdev Kapur.
Following the death of Sunjay Kapur, the fight for control over the Sona Group – an empire worth Rs 30,000 crore – took an ugly turn when his mother Rani Kapur alleged that she was “coerced” into signing some documents while she was grieving over his son’s untimely death. The issue escalated further when the company went ahead with the annual general meeting (AGM) on Friday, despite Rani Kapur’s objection. Furthermore, the flagship company, Sona BLW Precision Forgings Ltd, said that Sunjay Kapur’s mother has not been a shareholder since 2019, justifying the proceedings.
Kapur wrote to the board, asserting herself as the majority shareholder and requesting that the Annual General Meeting scheduled for this afternoon be postponed.
She alleged that she had been coerced into signing certain documents and raised objections over the appointment of “certain people (i.e., Priya Sachdev Kapur, her daughter-in-law)” who, she claimed, were representing the family without her consent.
In response, the company, in a filing to the stock exchanges, stated that in May 2019 it had received a “declaration of significant beneficial ownership” identifying Sunjay Kapur as the “sole beneficial owner…”.
The company justified Priya Sachdev Kapur’s appointment as a non-executive director, saying her name was “duly reviewed… and approved”. The company also clarified that Rani Kapur’s allegation of being coerced into signing documents was not true, as the board stressed that no documents had been signed or obtained from her since Sunjay Kapur’s death.
The family feud erupted after an email from Rani Kapur late Thursday, in which she requested the deferment of the Annual General Meeting (AGM). The board stated it sought legal advice on how to proceed “out of respect” for Ms Kapur.
“Based on the legal counsel and the fact Rani Kapur is not a shareholder of the Company, the Company concluded that it could not defer the AGM,” the exchange filing said.
Earlier, Kapur had accused her ‘enemies’ of attempting to usurp her family’s legacy while she was mourning the loss of her son. She said she had been informed of an item on the AGM agenda, i.e., “the passing of a resolution to appoint certain Director(s) as being the representative of the Kapur family”.
That ‘representative’ was Priya Sachdev Kapur.
Kapur made it very clear that she had not been consulted in this decision.
“For the record, I state I have not given any consent or officially nominated any person to come on the board of the company, or any other Sona Group company, after my son’s demise, or given any consent to any person to represent me in any capacity before any Sona Group company.”
“At this stage I do not wish to dilate any further on various gross illegalities… except to state, in no uncertain terms, that it is imperative that no decisions are taken without my consent,” she added.
According to a report in The Economic Times, Rani Kapur, who asserts that she holds majority ownership in the Sona Group based on her late husband’s 2015 will, may approach the high court next week to seek a declaration affirming her status as a shareholder and alleging she was excluded from voting at the AGM. Sources also indicated that she is likely to file a petition before the National Company Law Tribunal (NCLT), accusing the company of oppression and mismanagement. However, her legal counsel, senior advocate Vaibhav Gaggar, has denied that any legal proceedings have been initiated at this stage.