Thursday, 18 May 2023

Patriarch's Death Puts Spotlight on $14 Billion Hinduja Feud

For decades, Srichand Hinduja served as the patriarch of a sprawling business empire behind one of the world's biggest family fortunes with origins dating back more than a century.

His death at age 87 raises questions over who'll assume his role as de-facto head of the dynasty, whose legal battles in recent years over control of investments spanning banking, media and energy still threaten to tear apart the once tight-knit group.

Gopichand Hinduja, 83, is the British-Indian clan's oldest member following Srichand's death Wednesday in London. He and his two younger brothers - Prakash, 77, and Ashok, 72 - fought over the past three years with the patriarch and his daughter, Vinoo, over a letter signed by the four siblings that said assets held by one of them belonged to all. 

While the family called a truce on the bitter power struggle in November, it emerged last month they're still privately haggling on related issues.

The clan, which spans at least four generations, has a collective fortune of about $14 billion, putting it among Asia's 20 richest dynasties, according to the Bloomberg Billionaires Index.

"This is the litmus test for the Hinduja family's recent ceasefire," David Hawkins, co-founder of family-business consulting firm Percheron Advisory, said of Srichand's death.

At stake is the direction for one of the world's biggest conglomerates that employs more than 200,000 people worldwide.

Hinduja Group's assets include major holdings in listed Indian businesses - from automaker Ashok Leyland Ltd. to Mumbai-based lender IndusInd Bank Ltd. The Hindujas are also refurbishing a hotel near 10 Downing Street in central London, where they own a set of palatial homes overlooking St James's Park.

About three decades ago, Srichand - known as SP - founded a Swiss lender that became the focus of a UK legal battle between the family. The dispute spilled out into the public in 2020 over claims his three brothers were trying to take control in a power grab. SP's 32-year-old grandson, Karam, is chief executive officer of Geneva-based Hinduja Bank, while his daughter, Shanu, who turns 59 this month, is chair.

Shanu and Vinoo, 56, who led the recent legal fight for SP's branch of the family, said in a statement Wednesday that Srichand had died peacefully that morning.

"We will continue to uphold SP's legacy and values," they wrote.

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Vinoo Hinduja, daughter of Srichand Hinduja, leaves the Royal Courts of Justice in London in 2022.

The four Hinduja siblings' father, Parmanand, founded their namesake business in 1914 in the Sindh region of British India. SP and his brothers all joined what started out as a commodities-trading and carpeting-importing firm and rapidly diversified its investments, with early success distributing Bollywood films outside India.

Parmanand, who died in 1971, instilled in his sons a mantra they pledged to follow: "Everything belongs to everyone and nothing belongs to anyone."

For decades, the brothers adhered to that policy, describing it as their guiding principle. But that unified front crumbled in the final years of SP's life, during which he suffered from a form of dementia.

The Hindujas "were trying to guide themselves under a too-broad principle," said Leon Fernando Del Canto, a London-based barrister who works with wealthy individuals. "In this case, the courts will determine the dispute's future without clear agreements or a family constitution."

As part of last year's truce, SP's daughters and his brothers agreed to effectively tear up a 2014 letter underpinning their uniting principles, raising the prospect of a breakup for their conglomerate.

Still, that truce is looking increasingly fragile. The agreement to finalize it still needs signing off, and the family had outstanding questions over governance and succession even before SP's death. Those factors may lead to future legal proceedings in the UK or in other corners of the Hindujas' empire.

For the moment, the clan appears united in grieving for the loss of their patriarch.

"The brothers have always been four bodies and one soul," the family said in a statement. "His loss has left a huge void."



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The $120 Million Ghost Ship Antigua Is Desperate to Unload

It's been more than a year since the Russian superyacht Alfa Nero - all 267 feet and 2,500 gross tons of it - was abandoned in Falmouth Harbour, Antigua.

Cross the gangway and this $120 million floating palace still looks shipshape, even with just a skeleton crew. Red, white and gray Alfa Neropolo shirts are folded just so atop the baby grand piano. On the wall hangs a Miro. The infinity pool - which converts, via hydraulics, into a helipad - sparkles under the Caribbean sun.

And then, on the upper foredeck, in the wood-paneled study of the master suite, lies a clue that life aboard Alfa Nero has taken a very strange turn.

It's a PlayStation with video games like "Call of Duty." It's for the bored crew, since no passengers come aboard anymore. 

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The Alfa Nero, center, docked in Antigua.

Here on the southern shores of Antigua, where the British navy once chased real-life pirates of the Caribbean, Vladimir Putin's invasion of Ukraine has collided with the hyper-wealth he's helped mint in today's Russia.

What's left of the Alfa Nero's crew, it turns out, has partly commandeered the master suite. The captain sleeps in a guest bedroom, but otherwise the crew mostly remain below deck, leaving the five other luxury cabins, the spa, the gym, the elevator and everything else on board largely unused.

Ghost Ship
Alfa Nero has been docked here since early March 2022, a ghost ship of the war in Ukraine, 5,500 miles (8,851 kilometers) away. Not long after Russian troops crossed the border into Ukraine, the UK slapped sanctions on its purported owner, fertilizer billionaire Andrey Guryev. The US followed in August, sending FBI agents to search the vessel with local law enforcement.

Washington named Guryev as the owner, an allegation the magnate denies. A lawyer for Guryev said he's used Alfa Nero "from time to time" since 2014. Built in the Dutch shipyard Oceanco in 2007, it was until recently available for charter for about $1 million a week.

Just who is the owner is almost impossible to determine from public records given the labyrinthian means many of the world's ultra-rich employ to mask their wealth and assets. The notice of the ship's seizure by the Antiguan government is addressed to Guryev, as well as companies in the British Virgin Islands and Channel Islands. On board, Bloomberg saw notes for the crew that had references to "Mr. and Mrs. G."

Since Russia invaded Ukraine in early 2022, the US and its allies have issued sanctions against dozens of wealthy Russians to punish Putin and those close to him. In the process, luxury yachts linked to Russia have been transformed from billionaire playthings into symbols of the growing enmity between Russia and the West. More than two dozen vessels worth about $4 billion have been impounded in ports around the world.

Now, Antigua wants to get rid of what it considers an abandoned ship. It formally seized Alfa Nero in April, hoisted an Antiguan flag and, for good measure, posted two security guards on the dock.

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Antigua and Barbuda Port Authority "Seized" sign on the bridge of the Alfa Nero.

The harbor-bound Alfa Nero has become a floating hazard, officials say, and an expensive one at that. The crew wants back pay. Diesel for the generator costs a small fortune. Bills have been piling up since Antigua took it over in April, with crew expenses alone costing $112,000 a month.

Authorities here have asked the US to lift its sanctions on the yacht so Antigua can auction it off to the highest bidder. They say they've received roughly 20 bids already. 

'Blocked' Property
But as long as Washington continues to designate Alfa Nero as a "blocked" property, the Antiguans worry the proceeds of any sale might end up frozen as banks obey the letter of the law.

So they wait.

"Nobody's laid claim to it, nobody's been paying its bills. It's been running up money left, right and center, and it has become a risk to the harbor itself," Sir Ronald Sanders, Antigua's ambassador to the US, said in a telephone interview.

Antigua has offered to share the identities of potential bidders with the US to ensure any sale complies with Treasury's rules, Sanders said. Treasury officials declined to comment.

And so, day after week after month, the Alfa Nero bobs in the water at the Antigua Yacht Club Marina. The remaining crew scrubs its teak decks. They polish its black hull to a glossy sheen. Other yachts come and go through the bay.

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An Antigua Port Authority security officer aboard the Alfa Nero.

For the time being, the stranded Alfa Nero offers a glimpse into the astronomical expense of simply keeping a superyacht afloat.

Its normal crew of 44 has been reduced to six. Twenty-five members have sued to recover $2.1 million in unpaid wages, according to Craig Jacas, a local lawyer representing them.

"Our clients' objective is simply to secure what is lawfully owed to them," Jacas said.

Occasional Dip
The six hands still living aboard take meticulous care of Alfa Nero. They occasionally take a dip in the pool.  

The captain passes idle hours in a folding lawn chair on the port side deck. From his perch, he can spy a fleet of other superyachts gliding through the aquamarine harbor. In April, Mogambo, a 241-footer (73 meters) owned by Jan Koum, the Ukrainian-American billionaire who co-founded WhatsApp, pulled into a slip nearby.

Even here, in the relative safety of the marina, sun and sea are a constant menace. Saltwater takes a toll. Alfa Nero must burn diesel constantly to power everything on board. The air conditioning runs 24/7 in order to protect the precious wood, mother of pearl and soft leather adorning the high-design interiors.

"You can't even open the doors on Alfa Nerowithout diesel," said Tom Paterson, the dockmaster at the Antigua Yacht Club. "These boats, from the day they launch to the day they die, are burning fossil fuels."

Another growing worry: the calendar. Hurricane season is approaching once again. Other yachts have already begun to clear out. In September, when Tropical Storm Fiona rolled through, heavy seas threatened the dock-bound Alfa Nero. The marina asked the crew to take the ship out to sea - provided Dockmaster Paterson went along, too, to ensure Alfa Nero didn't make a run for it.  

"At this point, the marina would like to get paid," Paterson said.



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Opinion: Opinion: Winds Of Change Sweep Top Prison

Behind the imposing walls of Tihar jail, Sanjay Baniwal is crafting a story of hope for prisoners who have found the routine horrible and the horrible routine in India's maximum-security prison.

Mr Baniwal, the new Director General, Prisons, is just five months into his job, and not a rude enforcer. He wants to be the change agent in a 211-acre jail that is the largest prison complex in South Asia and had once reeked of overflowing toilets, cramped quarters, and lawlessness.

He does not look like the stereotypical jailor Bollywood has portrayed for decades. He wears linen shirts with matching cotton trousers, drinks water from copper flasks and routinely breaks bread with the inmates.

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Mr. Sanjay Baniwal

His office has the stylishness of glass-covered tables, tangerine leather sofas and elegant, skinny chairs - all produced by prisoners. At times, the environment feels more like a boutique hotel than a top-class prison.

"I want to give them honour, and a new life and dignity of being Indian," Mr Baniwal, a 1989 batch IPS officer, said in an exclusive interview.

Prime Minister Narendra Modi and Home Minister Amit Shah have reiterated in recent interactions with bureaucrats that more emphasis should be given to skill development programmes and efforts must be made to cut down overcrowding in prisons. Both the Prime Minister and the Home Minister also said prison administration is an important part of the internal security of the country and the way in which prisons are seen in society also needs to change.

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Mr Baniwal is seen as a reformer working overtime to ensure a new life for prisoners.

It is not an easy job to reform prisoners living behind iron-gated small, compartmentalised cells. Some are bloody stubborn. If handed utensils for some special cooking courses, someone could use them to smash a fellow prisoner. They are often at each other's throats for something as basic as onions for dinner.

In short, many prisoners care two hoots for such reforms. But that's a risk Mr Baniwal has already taken.

Consider this one. The prisoners of Jail Number 4 are now being trained to handle catering assignments outside Tihar with permission from the courts. The hospitality courses are held every day in the jail complex. There are chances the inmates will get jobs through a placement programme held inside the jail complex.

"I know I am in jail and not in a business school," laughs Mr Baniwal. Efforts are on to involve the judiciary to secure the release of the prisoners based on their record and the gravity of the offence.

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Noted social scientist Ashish Nandy says it is a great humanitarian effort and will bring in some effective changes in society. "Other jails should start such programmes to transform lives."

Gaurang Jani, a sociologist from Ahmedabad, talked about the Boris Becker experience in a UK jail. The three-time Wimbledon men's singles champion served eight months of his two-and-a-half-year sentence for hiding his assets and loans in a bankruptcy fraud case.

Mr Becker told BBC Radio 5 Live Breakfast: "Whoever says that prison life isn't hard and isn't difficult, I think is lying. It was a very brutal ... a very, very different experience to what you see in the movies, what you've heard from stories."

"In some cases, wives are being encouraged to visit their husbands, mothers come in to meet their sons and daughters. If someone is changing this perception of jail then it is commendable," says Mr Jani.

The other remarkable thing is how quiet Tihar is. There isn't any of the enraged, persistent banging of doors you hear in UK jails, prisoners in Tihar are not locked up much during the day.

Inside the sprawling complex of Jail Number 4, prisoners dress up like five-star hotel butlers and chefs, cook light meals and offer the finest Macchiato, or a Furtado. Tihar smells of freshly brewed coffee.

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While the guests eat, one of them takes the mic and sings - backed with karaoke music - like a professional. A veteran inmate wears gloves and guides the chef. He once owned a top hotel in the Indian Capital and has spent over seven years in Tihar on an alleged murder charge.

"The jail has turned me into a better person," says the inmate. He cannot be named per the jail manual. The case is still on.

The Primero Skills in partnership with Tihar Jail works under the aegis of National Urban Livelihood Mission. As many as 1,020 will gain skill training. Mr Baniwal knows the hospitality industry is one of the biggest employers in India; jobs come with accommodation. He has reached out to Haldiram's and has asked them to hire as many as 25,000 inmates on their release. The Kolkata-based fast-food giant has promised to do it.

It is a lot of work.

The jailor of Jail number 4, Gaurav Yadav, a DANICS 2014 batch IPS officer, keeps a close watch on prisoners allowed to take special cooking classes. Isn't it a risk to let loose so many prisoners? Mr Yadav, who looks like a Bollywood action hero, says he is not worried. He is like the Masai in Mara, he knows lions can attack anytime.

Mr Yadav says Mr Baniwal has other plans. The jail complex once hosted Tihar Idol on the lines of the popular reality show, The Indian Idol. And now there are efforts to start a TiharFM like a full-fledged channel. It currently works on the public address model, blended with songs, interviews with dignitaries visiting Tihar and some live shows.

"We need to nurture some talent," says Mr Yadav.

Mr Baniwal says that is the challenge of Tihar. You walk with the fear of violence, the fear of death. A sudden attack can happen anytime and can prove to be fatal. "You have to be a part of the system to change the system. As the day ends, everyone returns to their cells. Let me shape their mornings with peace and hope," says Beniwal.

The jailor has encouraged prisoners to use plaster of Paris to create statues of the meditating Buddha, Kali, the Goddess of Dark and Krishna, the love god. Some use fluorescent colours to paint bright flowers on the walls of the prison. Some create top-end furniture, including the spinning wheels Mahatma Gandhi used. Some weave lovely carpets and rugs. It's all for sale.

Mr Baniwal wants to remove the impression that a prison is a very dark place.

The jailor says he wants the prisoners to understand it's not just the sense of peril, reeking toilets and cramped quarters. And the impression that nobody cares and that if you are inside a jail, you are doomed for life.

"I do not want the inmates to feel that this is a run-down, lawless prison. Once they are inside the jail, their egos are stripped to the bare bones. After all, a jail is a strange place, certainly far away from relatives and other loved ones," says Mr Baniwal.

Once, the inmates knew they had only one choice: To be the hunter or the hunted. It was like a deadly wolf-rabbit game. Those who weren't wolves learned to become them fast in order to survive. The other word that came to their mind was danger. So, they always looked to hope when the squeaky locks of their iron gates opened every morning.

"I am offering the inmates a smile of sympathy, and a new life," says Mr Baniwal. He is both humane and eloquent.

"Jail binds you at three levels. Physical restriction comes first. The frustration of not being heard and the inability to get out comes next. And losing every luxury of life is third," says Mr Baniwal.

Mr Baniwal has scaled up timings for phone calls - it eased up things. The inmates fell in line, and now they know they cannot do anything without consent and assistance.

How do people react when they walk in?

The super-rich fall silent the moment they enter the prison. They are in a state of shock and demand isolation from fellow inmates. A significant number struggle with mental illness.

One such person - Mr Baniwal will not name him - came up to the jailor and asked if he could hold his hands. "I have not held someone's hands in as many days. Can I hold your hand?" Mr Baniwal spent some time with the person. The elderly, rich inmate just could not accept the fact that he was in Tihar.

"I gave him comfort; I know the jail can break you. Those accused of white-collar crimes just cannot handle it," says Mr Baniwal.

Tihar, for long, has been dysfunctional, decrepit and dangerous. Mr Baniwal's work is premised on two related ideas. First, he has reminded himself that all lives are fundamentally and equally valuable and second, people can grow and change and come to know themselves better even in small, dark spaces.

What about those in the condemned cells? That's a tough one - the inmates know there is no more fight for life. Regardless of whether you accept it or not, you are part of the death row community now.

And there is no life after death.

It's late afternoon. Visitors outside Tihar have thinned, it is time for the inmates to enter their cells. In every way of life, they have learned the true sense of freedom.

And the absence of it.

(Shantanu Guha Ray is the Asia Editor of Central European News. He is the author of 'Black Harvest: The India Coal Story' that will hit the stands in a few months. He is contributing editor, BQ Prime.)

Disclaimer: These are the personal opinions of the author.



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Cyclone Mocha: India Launches 'Operation Karuna' To Provide Aid To Myanmar

India launched "Operation Karuna" to provide humanitarian assistance for people in Myanmar, which is affected by Cyclone Mocha, and three ships carrying relief material reached Yangon today.

Taking to Twitter, External Affairs Minister S Jaishankar said, "India extends a hand of friendship to the people of Myanmar affected by #CycloneMocha. #OperationKaruna underway. Three Indian Navy ships carrying relief material reached Yangon today."

"A fourth ship will be reaching tomorrow. The ships are carrying emergency food items, tents, essential medicines, water pumps, portable generators, clothes, sanitary and hygiene items, etc. India continues to be the first responder in the region," he added.

Meanwhile, Indian Naval Ships Shivalik, Kamorta and Savitri were the first Naval ships to arrive at Yangon with relief material.

Indian Navy remains committed to ensuring Security and Growth for All in the Region and being the first responders in providing support to our neighbours during such calamities.

Meanwhile, the Dhaka Tribune reported that the death toll in cyclone-hit Myanmar rose to 81.

At least 46 people died in the Rakhine state villages of Bu Ma and nearby Khaung Doke Kar, inhabited by the persecuted Rohingya Muslim minority.

Thirteen people were killed when a monastery collapsed in a village in Rathedaung township north of Rakhine's capital Sittwe, and a woman died when a building collapsed in a neighbouring village, according to Myanmar state broadcaster MRTV.

"There will be more deaths, as more than a hundred people are missing," said Karlo, the head of Bu Ma village near Sittwe.

Nearby, Aa Bul Hu Son, 66, said prayers at the grave of his daughter, whose body was recovered on Tuesday morning.

Mocha made landfall on Sunday with winds of up to 195 kilometres (120 miles) per hour, downing power pylons and smashing wooden fishing boats to splinters, reported Dhaka Tribune.

Nine people died in Dapaing camp for displaced Rohingya near Sittwe, said its leader adding the camp was cut off and lacked supplies.

"People cannot come to our camp because bridges are broken... we need help," he said.



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Japanese Brand Sells World's Most Expensive Ice Cream. It's Priced At...

Ice cream is the quintessential summer dessert loved by children as well as adults. Foodies love to try out different flavours of the popular frozen dessert and some also try out popular brands to find their favourite flavour. The dessert's pricing usually kept in a range that it doesn't pinch your pockets. However, a Japanese company is selling an ice cream which is dubbed as the "world's most expensive" and is priced at a whopping 8,73,400 Japanese Yen (Rs 5.2 lakh), as per Guinness World Records (GWR). Japanese ice cream brand Cellato created "a very special dessert" made from rare ingredients that sent its price tag through the roof. 

As per GWR, the ingredients are to blame for its exorbitant price, with the rare white truffle from Alba, Italy, costing 2 million Japanese Yen (about Rs 11.9) per kilogram. Parmigiano Reggiano and sake lees are additional noteworthy ingredients.

The GWR website noted that Cellato's objective was not just to produce the costliest ice cream. They sought to create ice cream using a combination of European and Japanese components. Cellato hired Tadayoshi Yamada, the head chef of RiVi, a popular fusion restaurant in Osaka, to accomplish this. 

"The staff at Cellato who participated in the tasting session it is rich in taste and texture. They said the robust fragrance of white truffle fills your mouth and nose, followed by complex and fruity tastes of Parmigiano Reggiano. Sake lees finishes off the glorious taste experience," the website stated. 

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A representative of the Japanese brand spoke to GWR and said, "It took us over 1.5 years to develop, with a lot of trials and errors to get the taste right. Achieving a Guinness World Records title made the effort all worth it."

Further, the company wishes to release products with other combinations of "the finest ingredients" including Champagne and caviar. 



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Government Considering Setting Up 8 New Cities Across India: Report

A plan to develop eight new cities to alleviate population burden on the existing urban centres in the country is under consideration, a senior official said on Thursday.

The 15th Finance Commission in one of its reports had recommended that new cities should be developed, said MB Singh, director of the G20 unit of the Union Housing and Urban Affairs Department.

Mr Singh was speaking to Press Trust of India on the sidelines of a meeting of 'Urban 20 (U20)' in Indore.

"After the finance commission's recommendation, the states sent proposals to the Central Government for 26 new cities, and after a scrutiny, eight new cities are being considered for development," he said.

The government will in due course announce locations for the new cities and their development timelines, he added.

"We have to build new cities in the country as the existing cities are not able to cater to the needs of citizens. Haphazard expansion on the outskirts of existing cities is affecting the basic planning of these cities," Mr Singh said.

When a new city is developed, social and economic activities will increase within a radius of at least 200 km, he said.

Though the financial roadmap for setting up new cities has not been finalised, the Union government will play a major role in the project, he said.
 



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