MUMBAI: The patriarchs toiled several decades to build large real estate empires. But, as their businesses spawned and the second generation moved in to take control, bitter rivalry and bad blood flowed.
Over the years, the booming property industry has witnessed acrimonious battles, splitting once well-knit families. Old-timers blame lack of traditional family values. Differences of opinion, jealousy and greed have pitted brash siblings against each other, fathers against sons and cousins taking their disputes to court. At times, these battles spill out into the public domain, but some quietly resolve differences among squabbling family members with dignity and in utmost secrecy. Sometimes, ambitious wives instigate their husbands against the family.
"When family grows faster than the business, the pie diminishes. The next generation will not work together and unless there is a separation plan ready, trouble will follow," says developer Vimal Shah.
Recently, Mumbai-based construction company Wadhwa Group, with 19 projects in Mumbai, Panvel and Pune, undertook what it described as a major "business restructuring". Its chairman Vijay Wadhwa carved out responsibilities and tasks for his son-in-law Navin Makhija and his relative Sanjay Chhabria. "We have not split. These are market rumours," both Makhija and Chhabria told TOI during a joint meeting last week.
People familiar with the goings-on in the Wadhwa empire, though, said Chhabria will soon chart out on his own. "Some of the group's ongoing projects and one of the firm's commercial towers in the Bandra-Kurla Complex will be handled solely by Chhabria," said insiders. Makhija and Chhabria both denied that there are differences between them.
Another major dispute to come out into the open is between developer Gopal Narang and his industrialist cousin Rajan Raheja, which threatens to wreck their Rs 2,000 crore realty firm, Windsor Realty. This company is a 50-50 joint venture between Narang and his family (comprising the Narang Group) and the Rajan Raheja family (which also includes his two sons - Akshay and Viren). Last year, Narang moved the company law board alleging the Rahejas with their considerably more financial clout want to buy out Narang Group's stake in the company at a throwaway price.
Raheja alleged that Narang colluded with employees of the company to ensure "insubordination and restricted the supply of information and reporting to the Rahejas, frustrating the functioning of the board". The battle has now moved to the Bombay high court where Narang, in his petition, said the Rahejas unilaterally stopped the sale of flats in the company's ongoing project at Oshiwara to financially oppress him.
The Hiranandani brothers, Niranjan and Surendra, split their real estate empire amicably almost a decade ago when the former's son, Darshan, entered the family business. Niranjan had then described it as "strategic readjustment".
Few more complaints related to Wadhwa Group:
- Builders not liable to pay for ‘justified’ delays: MahaRERA
- Sanjay Chhabria: Mumbai realty's go-to man
- Born of a scam, it's now 23 storeys high
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