The ongoing inheritance dispute within the Oberoi family is capturing significant attention, revealing a drama that rivals the high-stakes narratives often portrayed in television series like 'Succession.' This real-life drama is playing out against the backdrop of the Oberoi Group, a major player in the hospitality industry. The dispute revolves around the conflicting wills left by the late PRS Oberoi, a key figure in the company’s history and development.
At the heart of this dispute are two factions within the Oberoi family. On one side are Vikramjit Oberoi, Natasha Oberoi, and Arjun Oberoi, who are asserting their claims based on a will dated March 20, 1992. They argue that this will reflects PRS Oberoi's wishes and supports their position in the family’s business and assets. Vikramjit, who currently serves as the Managing Director and CEO of EIH Ltd—the flagship company of the Oberoi Group—along with Arjun, who is the Executive Chairman of EIH, contend that PRS Oberoi’s ownership of the shares in Oberoi Hotels was held in trust for them and should pass to them posthumously.
On the opposing side is Anastasia Oberoi, PRS Oberoi’s daughter from his second marriage to Mirjana Jojic Oberoi. Anastasia has presented a will dated October 25, 2021, along with a codicil dated August 27, 2022, which she claims is PRS Oberoi’s final testament. She argues that this will confirm her right to a portion of the family’s assets and properties. Anastasia’s claims have led her to seek legal recourse through the Delhi High Court, alleging that her step-siblings and cousin are actively obstructing the proper execution of her father’s will.
The dispute has reached the Delhi High Court, which has issued an interim order designed to preserve the status quo regarding the ownership of shares in EIH Ltd, Oberoi Hotels, and Oberoi Properties. This order includes a freeze on transferring shares, with the exception of one Class-A share in each entity, which is to be given to Rajaraman Shankar, an executor of the will. Additionally, the court has safeguarded Anastasia and her mother’s rights to their family residence in Kapashera, Delhi, from interference by other family members.
The timing of this dispute is particularly challenging for the Oberoi Group, which is in the midst of ambitious expansion plans. The legal battle has the potential to divert focus from these growth initiatives, as the family’s internal conflicts become a significant distraction. Analysts are concerned that the ongoing dispute could impact the group's operational stability and its competitive position in the hospitality sector.
An insider from the Oberoi Group revealed that the conflict has been brewing for several years, largely due to the declining health of PRS Oberoi, which may have exacerbated existing tensions. Despite the turmoil, the Oberoi Group has assured stakeholders that its operations will continue as planned and that it remains committed to maintaining its high standards of service excellence.
Reliance Industries Ltd (RIL), which holds a significant stake of over 18% in EIH, has yet to publicly address the situation. The company's involvement in the matter could have implications for its own strategic interests.
For the quarter ending in June, EIH reported a revenue from operations of Rs 526.5 crore, marking an increase from the previous year's Rs 498 crore. However, the company experienced a decline in profit for this quarter, falling to Rs 97 crore from Rs 106 crore. For the fiscal year ending March 31, EIH recorded a revenue of Rs 2,511 crore and a profit of Rs 678 crore. The company’s share price has shown a substantial increase of 60.70% over the past year, closing at Rs 380.30 on Friday. This financial performance indicates the strength of the Oberoi Group’s market presence, even as internal family disputes unfold.
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