This is likely why the Edelman Trust Barometer finds trust in family-led businesses 12 percentage points higher than in their professionally managed peers. The ideal scenario is one where the business is nurtured by the family and passed down to the next generation, which then takes the legacy forward. But this is easier said than done. According to PwC’s 11th India Family Business Survey, such enterprises often face a lack of trust, accountability, and governance.
Things get especially fraught when the question of “who gets what” raises ownership disputes. Here are three cases where succession battles have split apart not just families but businesses as well.
Sona Comstar – An emerging EV player derailed by rifts in the family?
Sona Comstar is the latest entrant to the growing list of family feuds.
Just over a month ago, on 23 June, Sunjay Kapur, the company’s chairman and non-executive director, passed away. The automotive systems and components manufacturer, previously known as Sona BLW Precision Forgings, had been steadily shifting focus toward battery electric vehicles (BEV). Its revenue from BEVs has grown six-fold since FY21, raising their share of the overall business from 14% to 36%.
With an order book of ₹24,200 crore against FY25 revenue of ₹3,554 crore, the company boasts seven years’ worth of revenue visibility. Nearly 80% of this order book is tied to EVs. That explains how, despite a broader auto sector slowdown, the company rode the EV tailwinds to deliver an impressive 19% CAGR in revenue between FY22 and FY25.
In its FY25 investor presentation, the company also announced plans to enter the humanoid robot market. With overlapping components such as motors, gears, and sensors, this segment is seen as a natural diversification avenue for auto component firms.
So, when Sona announced its venture into China’s EV market on 20 July, less than a month after Kapur’s passing, it signalled business continuity and commitment to long-term strategy. But just four days later, when Kapur’s wife was appointed as a non-executive director, tensions erupted.
The family’s matriarch, Rani Kapur, wrote to shareholders objecting to the appointment. She alleged that while the family was still mourning Sunjay’s sudden demise, some individuals had taken advantage of the situation to seize control of the business.
Investors were still processing the chairman’s death and the company’s bold China push when the family feud came to light. The stock has since corrected over 8% in under a week. The outcome of the China venture remains uncertain, but it would be a setback if leadership uncertainty clouds the company’s promising EV pivot.
Sun TV – Family feud exacerbates fundamental troubles
A politically charged family dispute dating back decades resurfaced a couple of months ago.
On 10 June, Dayanidhi Maran, a former Member of Parliament from Tamil Nadu’s ruling party Dravida Munnetra Kazhagam (DMK), accused his brother, Kalanithi Maran, of fraudulently taking control of Sun TV back in 2003. Once again, the death of a business leader allegedly triggered a scramble for ownership. In his legal notice, Dayanidhi claimed that after their father’s death in 2003, Kalanithi exploited the family’s vulnerable emotional state to gain control of the company.
He has sought to restore the business to its pre-2003 ownership structure. If successful, this would eliminate chairman Kalanithi’s current stake, estimated to be worth ₹18,000 crore, and transfer the business to Dayanidhi, their cousin M.K. Stalin (the chief minister of Tamil Nadu), and their siblings. This leadership uncertainty could prove to be the final blow to a company already struggling.
Sun TV is one of India’s largest media conglomerates, reaching 10% of the country’s population. Its brand once dominated the southern market. It also owns the IPL team Sunrisers Hyderabad. But the company has been steadily losing ground. As industry consolidation picks up and viewer preferences shift, competition has intensified, and Sun TV has failed to keep pace.
Northern players like Zee have made inroads into the southern market, while Sun’s own Hindi channel failed to gain traction. Its OTT platform, Sun NXT, has largely pushed conventional content online instead of building exclusive rights or originals, limiting audience appeal. Its DTH arm, Sun Direct, has struggled to revive performance. The result: stagnant revenues and profits for over half a decade.
Now, with a politically sensitive legal battle brewing at the top, the company faces yet another headwind. The stock has declined 10% since the dispute surfaced, continuing a long streak of underperformance relative to the broader market.
Yes Bank – When a fight for legacy opened a can of worms
A family dispute that shook an entire industry played out at Yes Bank. The rift, which began in 2009, ultimately altered the bank’s trajectory. When co-founder and non-executive chairman Ashok Kapur died in the 2008 Mumbai terror attacks, his wife, Madhu Kapur, was left to fight for his legacy.
After multiple failed requests to nominate their daughter, Shagun Gogia, to the bank’s board, the matter reached the courts. The long-drawn legal battle that followed opened up a can of worms. Amid court proceedings, the surviving co-founder, Rana Kapoor, could not appoint a successor, and the Reserve Bank of India (RBI) refused to grant him an extension on his tenure. Soon after, several board members resigned, citing governance concerns.
Kapoor, who sought to erase Ashok Kapur’s contributions from the bank’s history, was later found to be laundering money and involved in multiple cases of bank fraud. The regulator also uncovered hidden bad loans and forced his resignation. The stock plummeted, lenders offloaded pledged shares, and the freefall intensified.
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With the leadership in limbo and the stock battered, the bank couldn’t raise capital. The RBI was forced to impose a moratorium, capping withdrawals due to financial instability. Rana Kapoor was jailed. Though Madhu Kapur won the legal battle against him, she and her family ultimately lost the war for Yes Bank. They stepped down as promoters and agreed to be reclassified as public shareholders.
A consortium led by the State Bank of India eventually rescued the bank in 2020. Under new leadership appointed by the regulator, Yes Bank has since found its footing. Rana Kapoor was granted bail last year.
But the entire episode still leaves one wondering: what might have been.
Ananya Roy is the founder of Credibull Capital, a Sebi-registered investment adviser. X: @ananyaroycfa
Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
