Companies

Chettinad Group’s family feud worsens

Our Bureau Chennai | Updated on January 22, 2018 Published on November 18, 2015

mam ramaswamy

MAM Ramaswamy

Estranged son MAMR Muthiah goes to police accusing industrialist AC Muthiah of trying to grab property



The father-son spat in the Chettinad Group has taken a new turn with the estranged son MAMR Muthiah accusing industrialist AC Muthiah, a relative and associate of his father MAM Ramaswamy, and two others of creating documents to grab property.

AC Muthiah categorically denied the accusation and said any action he had taken was on behalf of MAM, as Ramaswamy is popularly known.

MAMR Muthiah, Managing Director, Chettinad Group, said in a statement that his father was hospitalised and “incapable of doing anything”. But AC Muthiah, along with an advocate and a doctor, at the hospital, “has taken thumb impression and signature of my father in blank papers and other unfilled forms” to transfer his assets illegally, he alleged.

They intend to transfer MAM’s assets including his 91.83 lakh shares in Chettinad Cement to two trusts run by AC Muthiah and another individual, MAMR Muthiah said. He said he has lodged complaint with the Commissioner of Police regarding these “fraudulent activities.”

‘On behalf of MAM’

However, AC Muthiah said: “I am only consolidating properties on behalf of MAM.” Two trusts have been formed with MAM as the sole beneficiary of one. The other is a charitable trust to which the assets will go after MAM. Nobody else can benefit from this arrangement, he said.

He added that MAMR Muthiah, the adopted son whom MAM has disowned, is adopting “mean tricks” and behaving badly.

MAM, 84, is the third generation patriarch of the ₹4,000-crore Group which has diversified business interests. Over the last two years, the father and son have accused each other of acting against the interests of the company. At the Chettinad Cements’ AGM last year, MAM was voted out of the post of chairman with MAMR Muthiah holding a 75 per cent stake in the company.

In June this year MAM announced at a press conference, along with AC Muthiah, that he has formally disowned his son by annulling the ritual adoption rites. AC Muthiah, an industrialist, is his first cousin and well wisher, MAM had said at that time.

Published on November 18, 2015
null
This article is closed for comments.
Please Email the Editor