Venu Srinivasan, chairman emeritus of TVS Motor Company, his wife Mallika Srinivasan and their children Lakshmi Venu and Sudarshan Venu have filed caveats against one another in 2 Chennai courts, according to court records reviewed by CNBC-TV18. Mallika Srinivasan and Lakshmi Venu have reiterated their desire for an amicable resolution through transparent discussions and dialogue.
The filings show both sides are preparing for possible litigation in the ongoing dispute over the division of the family’s wealth.
8 caveats were filed on October 12 and 13, 4 each in the City Civil Court and the Commercial Court in Chennai. They split the family into 2 camps. Caveats filed by Venu Srinivasan and Sudarshan Venu name Lakshmi Venu, while those filed by Mallika Srinivasan and Lakshmi Venu name Venu Srinivasan.
In the City Civil Court, Venu Srinivasan filed his caveat on October 12 along with VS Trust, represented by him as trustee. It names Lakshmi Venu and Mallika Srinivasan. Mallika Srinivasan filed hers about 2.5 hours later, naming Venu Srinivasan, Sudarshan Venu and VS Trust. Lakshmi Venu filed a caveat naming Venu Srinivasan, and Sudarshan Venu filed one naming Lakshmi Venu, both on October 13.
In the Commercial Court, all 4 family members filed caveats on October 12. Venu Srinivasan and Sudarshan Venu’s caveats name Lakshmi Venu. Mallika Srinivasan and Lakshmi Venu’s caveats name Venu Srinivasan.
The City Civil Court caveats were filed in anticipation of original suits, which are civil suits. The Commercial Court filings suggest both sides also expect disputes that fall under commercial law.
A caveat is a defensive filing under Section 148A of the Code of Civil Procedure. It is filed by a party that expects to be sued, and requires the court to hear that party before passing any order on an application against it. A caveat is valid for 90 days. There is no public record so far of a suit being filed by either side.
In a statement shared with CNBC-TV18 on the economic interest and settlement arrangement within the Venu Srinivasan family, Lakshmi Venu and Mallika Srinivasan said, “As stated earlier in their joint statement, Dr Lakshmi Venu and Mallika Srinivasan reiterate their desire for an amicable resolution through transparent discussions and dialogue.”
CNBC-TV18 has reached out to Venu Srinivasan and Sudarshan Venu for comment. The story will be updated if they respond.
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How the dispute began
The first caveats were filed on the same day Mallika Srinivasan and Lakshmi Venu issued a joint statement, and a day after Venu Srinivasan made his position public.
On October 11, Venu Srinivasan said he had separated the family’s businesses between his 2 children, with Lakshmi Venu given responsibility for Sundaram-Clayton and Sudarshan Venu for the motor business. He described this as a fair division based on commercial considerations, carried out with the knowledge of his family.
On October 12, Mallika Srinivasan and Lakshmi Venu rejected that account, saying no economic settlement had been reached within the Venu Srinivasan family.
At the centre of the dispute is a memorandum of understanding signed by the 4 family members on March 21, 2024. People close to Venu Srinivasan and Sudarshan Venu say it formalised the division of assets, with Lakshmi Venu to receive Sundaram-Clayton and Sudarshan Venu to receive TVS Motor. They also point to a 2020 settlement among 4 branches of the TVS family that separated their holding structures.
Mallika Srinivasan and Lakshmi Venu dispute that any economic settlement covering the siblings’ assets has been concluded. According to reports, they have said the MoU was limited to brand usage and non-compete terms. Their position is that both children have equal rights over the family’s wealth, and that any resolution should be based on valuation, discussion and agreement.
Venu Srinivasan also said Mallika Srinivasan had expressed an intention to transfer ownership and control of tractor maker TAFE to Lakshmi Venu. Mallika Srinivasan and Lakshmi Venu have said TAFE belongs to the Amalgamations Group, a separate family business group in which Mallika Srinivasan is a shareholder, and has no bearing on the settlement.
Who’s who
Venu Srinivasan is the grandson of TVS Group founder T. V. Sundaram Iyengar. He is chairman emeritus of TVS Motor Company and TVS Holdings. Sudarshan Venu is chairman and managing director of TVS Motor Company and managing director of TVS Holdings. Lakshmi Venu is vice-chairperson of TAFE and managing director of Sundaram-Clayton. Mallika Srinivasan is chairperson and managing director of TAFE.
Lakshmi Venu holds 0.82% of TVS Holdings directly, and Mallika Srinivasan holds 0.29%, according to exchange filings.