Ready for talks to settle Murugappa family dispute: Valli Arunachalam

Eldest daughter of former Murugappa Group exec chairman M V Murugappan was the one who had taken family members to NCLT

Valli Arunachalam, the eldest daughter of former Murugappa Group executive chairman M V Murugappan and the one who had taken Murugappa Group family members to the National Company Law Tribunal (NCLT), said on Monday that she is open for talks with other family members to find an amicable solution to the dispute.

In an interaction with Business Standard, she said she was hopeful of a favourable decision from the tribunal. Valli Arunachalam, her sister and their mother, were demanding a board seat in Murugappa Group’s holding company Ambadi Investments (AIL) or a suitable value for their 8.23 per cent shareholding in AIL. She had approached the Chennai bench of NCLT seeking waiver on the 10 per cent minimum shareholding required for the alleged ‘oppression and mismanagement’ case against AIL be valid.

“I am always open and my door is always open to a fair settlement,” Arunachalam said, adding that she did not get any positive response so far. Last week, the Chennai branch of NCLAT had given a relief to Arunachalam, allowing her family to withdraw an earlier waiver application and take on record the second waiver application. NCLAT also dismissed an appeal by AIL against an order at NCLT allowing the second waiver application. “NCLAT order reinforces my belief in the justice system. I strongly believe that justice will be delivered,” she said. Arunanchalam’s family had withdrawn the first application citing certain technical errors.

“NCLT had passed an order taking the new waiver application on record. Murugappa appealed to NCLAT on the order that NCLT passed admitting our new waiver.  Now, NCLAT has dismissed all their applications. I believe that now the matter has to be argued on merit in NCLT,” she added. Arunachalam said that she is hopeful of getting a waiver from NCLT.

“For over three years, I was in communication with the family to settle us amicably at fair value. I proposed a lot of ways in which they could do it in a phased manner, which included arbitration. They categorically said no to everything. Not ready to settle, or being willing to include us in the business, like every other family is included, then I approached the tribunal,” she said, describing the situation that led to the battle at the tribunal.  Arunachalam’s father Murugappan passed away in 2017 and it was in 2020 that she came out in public seeking a seat in the board of AIL.  She had also alleged gender bias.

“I think, many Indian families are bringing their daughters into the family business now, just like sons. That is commendable, right from the Ambanis and many of the industrial families in Tamil Nadu like TVS and Apollo Group  too are doing it,” she said.