Oberoi case: Dispute between Oberoi children reaches Delhi High Court, which stays transfer of EIH shares

A conflict between the offspring of seasoned hotelier PRS ‘Biki’ Oberoi has reached the Delhi High Court. This past week, the court issued a temporary injunction prohibiting EIH and its affiliated entities, Oberoi Hotels (OHPL) and Oberoi Properties (OPPL), from assigning their shares.

Anastasia, the daughter of PRS Oberoi, launched a lawsuit in court against her brothers and a cousin to seize control of the family’s sizable stake in EIH, which oversees PRS Oberoi’s will and the Oberoi and Trident hotel chains.

Along with her mother Mirjana Jojic Oberoi, she launched a lawsuit against her cousin Arjun, sister Natasha, and brother Vikramjit. According to the lawsuit, Vikramjit and Arjun plotted to prevent their late father’s will from being carried out by working with the executors he nominated.

On September 12, Justice Navin Chawla granted an interim ruling in favor of Anastasia, issued an injunction against the shares owned by PRS Oberoi, and safeguarded the family home’s continuing ownership for Anastasia and her mother. According to the HC, Anastasia has shown a “strong prima facie case in their favor,” and if the shares and assets are transferred, the plaintiffs would suffer severe, irreversible injury.

The HC said in granting the temporary injunction that the plaintiffs had shown enough evidence to support the will’s initial validity. The issue centers on who would handle the family’s significant EIH assets as well as their Bijawasan family mansion in Kapashera, Delhi.

They have requested permission to state that they are entitled to own, possess, enjoy, and exercise all rights in 1600 A-class shares and 62,075 B-class shares of Oberoi Hotels, as well as 100 A-class shares and 2,600 B-class shares of Oberoi Properties, via the lawsuit that Anastasia and her mother filed. PRS Oberoi left his two daughters movable possessions, including interests and shares in the three holding companies—OHPL, OPPL, and Aravali Polymers—according to the claim. One half was given to his daughter Natasha, and the other to the AO Trust, which has Anastasia as its only beneficiary.

Regarding the property in Bijawasan, it was left to the Aashiana Trust by his will. In this case, Anastasia, her mother, and another trustee, Anmol Joshi, are the plaintiffs in her lawsuit, and Anastasia is the only beneficiary and trustee.

The plaintiffs assert that rather than looking into the possibility of transferring the shares held by the PRS Oberoi in OHPL and OPPL, the executors of the will, which include Natasha, might sell those shares to Vikramjit and Arjun at a price that would be set by them, negating the intent of the will itself. The plaintiffs express concern that other family members may sell the company’s shares.

In order to prevent Rajaraman Shankar, Daniel Lee Farrugia, Natasha Devi Oberoi, Oberoi Hotels, and Oberoi Properties from registering any transfer or transmission of shares held by PRS Oberoi in Oberoi Hotels and Oberoi Properties other than in favor of the legatees under the last will and testament dated October 25, 2021 read with codicil dated August 27, 2022, the suit also sought direction to grant a decree of permanent injunction against these parties.

The attorneys for Arjun and Vikramjit disagreed with the petition, arguing that the complaint isn’t sustainable in and of itself. Additionally, they contend that shares, contrary to Oberoi’s Will, may be given to a blood relative rather than a trust. Rajaraman Shankar, the COO of Oberoi Hotel Groups, may only use his voting powers to ensure statutory compliance and file required reports, the HC said while issuing the injunction.