)
The long-running family feud between former chairman of Chettinad Group M A M Ramaswamy and his adopted son M A M R Muthiah intensified on Tuesday with the father rejecting the son’s truce offer. Ramaswamy said his wealth would go to a trust run by his cousin and Spic Group's chairman Emeritus A C Muthiah and other senior people from the Chettiyar community.
“Before Ayyappan (Muthiah's original name) came into our family, I have been conducting our family business without any serious problems and the assets have grown, cash flows were extremely positive, and debts have been very low,” 85-year-old Ramaswamy told reporters in Chennai on Tuesday.
He added while philanthropy has been the pride of the family, Muthiah was “stingy” about spending. According to Ramaswamy, this is the main reason for the differences between the two.
While refuting his father's allegation, Muthiah said that "actions he (his father) is taking today is inappropriate and will not take him in any positve direction. Its not possible to rewind 20 years".
The father alleged that Ayyappan, currently the managing director of Chettinad Cement, had no business background or experience before coming into the family.
On the other hand, Ayyappan claimed that when he took over Chettinad Cement, its market capitalisation was Rs 60 crore and that he grew it to Rs 4,000 crore in two decades.
“We adopted him without following the mandatory customs of the Nattukottai Nagarathar community. Now we have cancelled it (adoption) and the temples have accepted the same. I am talking to my legal team to take next course of action,” said Ramaswamy, adding that there would be no compromise. “We trusted him in all walks of our life, but he, with ulterior motive, transferred a substantial part of our properties and powers in business and forced me to make him the managing director of Chettinad Cement Corporation and also pressurised me to induct him and his wife Geetha Ayyappan,” he alleged.
It may be noted that the fight came to light after the shareholders of Chettinad Cement voted against the re-appointment of Ramaswamy as director and chairman of the company last year. The company appointed Ramaswamy as chairman emeritus, but he declined to accept the offer.
Ramaswamy said according to his father's will, the wealth should go only to a grandson adopted “according to the traditions of the Nattukottai Nagarathar Community”. According to the Nagarthar customs, a son is adopted not only to take care of the parents in their old age, but is also expected to perform the annual rituals in remembrance of his parents who have passed away. “Ayyappan has not performed these rituals for my late wife Sigappi Achi,” he said.
According to A C Muthiah, “there is nothing great to be a Chairman Emeritus”. It may be noted that he was appointed Chairman Emeritus of SPIC, which is run by his son Ashwin Muthiah.
When asked whether he tried to mediate between the father and son, he said: “I refused to when he (Ayyappan) approached me since he doesn't keep his word.” He also alleged Ayyappan diverted funds from Chettinad Cement to his family and violated law many times.
“I have written and registered a will that all the assets which may be left at the time of my death would go only to the said trusts (Dr M A M Ramaswamy Chettiar of Chettinad Charitable Trust and Dr M A M Ramaswamy Chettiar Trust) and not to M A M R Muthiah or anyone claiming on his behalf or under him. I have also stated that he shall not perform any ceremonies or obsequies upon my demise. Thus, I have disowned him and do not wish to call him my son. Whatever the law may be, he is no more my son. According to me, he can be only S Ayyappan and not M A M R Muthiah,” said Ramaswamy.
Ramaswamy’s properties include the Chettinad Palace at Chennai, which is spread over an area of 22 acres and is worth about Rs 3,000 crore.
