Succession Wars: Bina Modi takes on sons in fight for Godfrey Phillips throne

As the legal showdown unfolds, it's Modi vs Modi in a gripping battle that tests family bonds and determines the future of Godfrey Phillips India, highlighting ambition, legacy, and loyalty.

In Short

• Bina Modi faces accusations in family inheritance feud
• Sons accuse Bina Modi of defying KK Modi’s will
• Samir, Lalit Modi challenge mother in succession dispute

The battle for control of Godfrey Phillips India isn’t just blowing smoke—it’s a blazing family feud, with the flames ignited by an inheritance war that’s spreading faster than a lit cigarette.

At the heart of the conflict is 80-year-old Bina Modi, the iron-willed matriarch who’s showing more tenacity than most CEOs half her age as she squares off against her own sons.

Chairperson of Godfrey Phillips India, Bina Modi has made her position crystal clear: the family empire built by her late husband, KK Modi, is not for sale. "KK Modi's legacy is not for sale. It has to be kept alive," she said, breaking her silence on a dispute that has transfixed India.

The battle has erupted into a public legal showdown after her sons, Samir and Lalit Modi, accused their mother of defying the spirit of KK Modi’s will. Their core argument hinges on the trust deed that KK Modi signed before his death in 2019, which now fuels this heated inheritance dispute.

The Modi family's Godfrey Phillips empire

The Modi family’s long-standing association with Godfrey Phillips began in 1936, when Krishan Kumar Modi (KK Modi) founded the company. Under his stewardship, Godfrey Phillips transformed from a modest tobacco producer into one of India’s largest diversified conglomerates, with interests stretching into tea, beverages, and retail.

But the Modi dynasty’s origins stretch further back. KK Modi’s father, Rai Bahadur Gujarmal Modi, laid the foundation for the broader Modi Group. After his death in 1976, the reins passed to his stepbrother Kedar Nath Modi. But it was the division of the family’s business empire in 1989 that handed control of Godfrey Phillips to KK Modi.

The spark that ignited the feud

The family feud burst into flames following KK Modi’s death in 2019. His vast holdings, particularly his significant stake in Godfrey Phillips India, became the focus of the dispute.

Valued at over Rs 11,000 crore ($1.3 billion) and by some estimates as much as $4 billion, the Modi family fortune is now the battleground.

Who’s who in the Modi succession drama

In the middle of this saga are four key players:

Bina Modi: The widow of KK Modi and Chairperson of Godfrey Phillips India.

Samir Modi: A son of KK Modi and former Executive Director at Godfrey Phillips.

Lalit Modi: Another son, known for his role in cricket administration.

Charu Modi: KK Modi’s daughter, who has aligned herself with Bina Modi in the feud.

Boardroom battles, assault allegations

Since 2019, this family drama has played out in India’s courts, with cases as complex as the family history itself.

Assault allegations: Samir Modi sought legal protection after accusing his mother’s security team of assaulting him during a board meeting, which only stoked the flames further.

Contempt petition: Bina Modi filed a contempt petition accusing her sons of violating a Supreme Court order to refrain from making disparaging remarks during mediation, though she withdrew the petition in July 2024, possibly signaling a tactical change.

Boardroom battles: A Delhi court ordered Bina Modi to recommend Samir for reappointment to the board of Godfrey Phillips, but only after he went through the proper legal channels. The Delhi High Court also rejected Lalit Modi’s son Ruchir’s plea to reduce Bina Modi’s powers as managing trustee of the family trust.

AGM power plays: At the September 2024 Annual General Meeting (AGM), Bina Modi solidified her leadership, securing 86.6% shareholder approval to stay as Chairperson. Meanwhile, Samir Modi was ousted from the board, and in a surprising twist, Charu Modi was appointed as Executive Director with overwhelming support from shareholders.

Bina Modi’s battle for control

The core of Bina Modi’s power lies in her control of the family trust, which holds a 48% stake in Godfrey Phillips India. This gives her considerable influence over the company’s future in key sectors like tobacco, direct selling, and agrochemicals.

While her sons have fought tooth and nail, accusing her of not honouring their father’s legacy, Bina Modi insists she’s never initiated any legal action herself. She’s always been on the defence, simply reacting to the litigation surrounding her.

Yet, the ongoing inability to agree on the value of the family’s inheritance has stretched this battle into its fifth year.

In what has become one of India’s most closely watched corporate sagas, the Modi family’s fight for control of Godfrey Phillips shows no signs of cooling down anytime soon.

But one thing is clear: Bina Modi is ready to fight to the very end to keep KK Modi’s legacy alive.