NEW DELHI: it is less than a year since the death of the redoubtable Ramnath Goenka, the proprietor of “Indian Express”. But already, a bitter feud has broken out in the family to take control of his massive publishing empire, though operative control right now is with his grandson Vivek Goenka, adopted in 1990 as his son.

On the other side are ranged another grandson Manoj Somthelia and daughter-in-law Saroj Goenka.

The points of dispute involve Goenka’s will, Vivek’s adoption, the shareholding pattern in Nariman Point Building Services and Trading (Private) Limited, the holding company for the Group, evaluation of assets, and ridiculously even the place of residence of RNG, as the late Goenka was popularly known.

Already both sides have gone to court, each demanding full control of the group.

Matters came to a head at the June 24 meeting of the Board of Directors, chaired by Bombay

Dyeing’s Nusli Wadia. According to sources, three new directors were inducted onto the board without notice of the agenda. This was “forced by Vivek”, with the help of Wadia and TVS group’s Venu Srinivasan, both directors on the board.

This inductor was bitterly opposed by Sonthalia and Saroj Goenka’s representative Vaidyanathan. On the original six directors, it was only former “Express” editor S.Mulgackar who was neither present nor was represented, The new directors are R.A. Shah a lawyer with Crawford Bayley, K.R. Rimamani, tax consultant and Dileep Singh chartered accountant.

With the addition of these three new directors, the balance of power has shifted tremendously in favor of Vivek by 6-2, with Mulgaonkar now thoroughly uninterested,” said an insider.

Also at the meeting, both Sonthalia and Saroj’s representatives closely questioned the recent sale of the Group’s Gujarati publications, al Ahmedabad, Rajkot and Baroda, to Gujarat Chief

Minister Chiman bhai Patel at a “throwaway” price of Rs.2.5crore. Sonthalia reportedly said a better deal could have fetched five times the amount. This was countered by the statement that the deal was cut due to certain “political” considerations. Other things, 00, were discussed. Wadia wanted a commitment on the return of Rs, 11 crore advanced to Express Group by his company. Srinivasan suggested that he be given some equity. This was resented and the matter was summarily dropped. The sources also said Vivek offered Sonthalia total control of Indian Express Madurai (Private) Limited, which controls the south Indian editions, but this too was opposed by Vaidyanathan, That both sides are readying for a fight is only too obvious. Representatives of each have already met the Prime Minister and sought a favorable attitude from the government, Sources said, after the June 24 meeting. Saroj Goenka and Manoj Sonthalia wrote to the Finance Minister saying since financial institutions have a stake in the group, they should direct the EXPRESS management that every bank check be signed by all the directors.

The controversy is further compounded by the fact that on the one hand Saroj Goenka has sought to treble the rent paid by Vivek, for running the paper from the Express Building in the Capital’s Bahadur Shah Zafar Marg, which is owned by her as per Goenka’s will, itself; a subject of controversy. On the other, both Vivek and Express executive editor Prabhu Chawla have approached the New Delhi Municipal Committee (NDMC) saying, they should not be asked to pay.

Article extracted from this publication >> July 17, 1992