CHENNAI: A dispute over the division of property and financial ownership within the Srinivasan family of the TVS Group has intensified, with Mallika Srinivasan and her daughter Lakshmi Venu publicly rejecting claims made by TVS Motor Company Chairman Venu Srinivasan that a settlement has been reached. While Venu Srinivasan maintained that he had distributed the family businesses between his son Sudarshan and daughter Lakshmi Venu, his wife and daughter stated that no formal agreement exists regarding the division of financial interests within their branch of the family.
Venu Srinivasan Defends Division of Businesses
Defending his actions, Venu Srinivasan asserted that the businesses and assets belonged to him, granting him the right to make decisions he considered appropriate for both the enterprises and family members. He stated that he has long favoured passing ownership and operational control to the next generation at an early stage to allow them to build and expand the ventures. Under this arrangement, he assigned responsibility for the SCL business to Lakshmi Venu, while Sudarshan was entrusted with the motor business, describing the move as a fair division based on commercial considerations.
Venu Srinivasan added that the reallocation was conducted transparently and with the knowledge and consultation of the family. He also claimed that his wife, Mallika Srinivasan, had expressed an intention to transfer ownership and control of Tractor and Farm Equipment Limited (TAFE) to Lakshmi Venu, who already serves as vice-chairperson of the company.
Wife and Daughter Dispute Asset Ownership Claims
Challenging these statements, Mallika Srinivasan and Lakshmi Venu issued a joint statement arguing that the situation regarding the family businesses had been mischaracterised. They questioned Venu Srinivasan’s claim that the assets belonged exclusively to him and could be divided unilaterally. The two emphasised that assigning managerial roles, establishing brand agreements, and executing non-compete obligations cannot serve as a substitute for a comprehensive and binding settlement of financial ownership.
They further clarified that while proper compensation had been provided for management functions, the core issue of determining and recognising economic ownership of the underlying assets remained unaddressed. In contrast to the broader TVS Group restructuring completed after a 2020 agreement that involved mutual consent and formal asset valuation, they noted that no comparable valuation or negotiation process had taken place within their own family branch.
TAFE Clarification Distinguishes Business Interests
Addressing references to TAFE, Mallika Srinivasan and Lakshmi Venu clarified that the tractor manufacturer is part of the Amalgamations Group, a separate family enterprise where Mallika Srinivasan is a shareholder. They stated that the ongoing financial disagreement within the Srinivasan family branch has no connection to TAFE or its ownership structure.
The exchange highlights a widening gap between the allocation of corporate operational responsibilities and the legal division of economic assets. While Venu Srinivasan continues to hold that the operational responsibilities have been settled fairly between the next generation, his wife and daughter maintain that the actual financial settlement remains open, leaving the family dispute unresolved.
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