Clarifying their stand on the ongoing dispute in the TVS family, Lakshmi Venu and her mother, Mallika Srinivasan, have said no economic settlement has been reached within the Venu Srinivasan family over ownership of businesses and assets in the TVS Group.
"No economic settlement has been reached within the Venu Srinivasan family," said a joint statement by Lakshmi and Mallika. It stated that the larger TVS family partition, agreed in 2020 and implemented subsequently, was undertaken through a process involving the relevant stakeholders. No comparable process involving transparent valuation, discussion and mutual consent has taken place concerning the economic interests within the Venu Srinivasan family. No agreement dividing these economic interests has been concluded, it added.
The statement indicated that the suggestion that all family assets belong exclusively to one individual, who is therefore free to distribute them unilaterally, is neither an agreed nor an established position. It added that the fundamental issue is not about management positions, which have been compensated appropriately and commensurately. "It is about the fair recognition of rightful economic ownership, which remains unresolved," it said.
"Management responsibilities must not be confused with economic ownership. The allocation of leadership roles or opportunities to manage businesses does not constitute a division of family assets, nor can it substitute for the rightful economic interests of family members. Similarly, arrangements concerning trademarks, brand usage and non-compete obligations cannot be represented as an economic settlement when no such settlement formed part of those arrangements," it added.
Mallika Srinivasan clarified that references to TAFE in this context are misplaced. TAFE forms part of the Amalgamations Group, a separate family business group in which she is a shareholder. "TAFE has no bearing on the economic settlement within the Venu Srinivasan family and should not be conflated with it. Presenting her longstanding association and custodial role with TAFE as evidence of an equitable distribution of economic interests within the Venu Srinivasan family is fundamentally misleading," it added.
It further stated that the arrangements within the family were made unilaterally and cannot be regarded as fair or consensual. "Any equitable settlement must recognise the legitimate economic interests of all concerned parties and be based on a transparent process of valuation, discussion and agreement," the statement added.
The statement also called for an early, fair and amicable resolution, which would be in the best interests of the family, its businesses and all their stakeholders. "We remain committed to resolving these matters through constructive dialogue, with dignity, grace and equity."