SC extends mediation in Kapur family trust row till November

The Supreme Court said mediation in the family trust dispute between late industrialist Sunjay Kapur's mother Rani Kapur and wife Priya Kapur was progressing satisfactorily. The court extended mediation till November, urging both sides to avoid prolonged litigation

New Delhi: Noting that mediation is proceeding “quite satisfactorily,” the Supreme Court on Thursday said it was “hopeful” that the dispute between late industrialist Sunjay Kapur’s mother Rani Kapur and his wife Priya Kapur over the family trust may be resolved amicably.

A bench of Justices J B Pardiwala and K Vindod Chandran took note of the preliminary mediation report filed by the mediator. “We take notice that the mediation proceedings so far have been conducted over 6 sessions. The Mediator has interacted with all members of the family. We are happy to note that the mediation is proceeding quite satisfactorily. We are happy to note that parties are cooperating,” the bench said.

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The top court also noted that the mediator has made a request to allow time for mediation till November 2. “…parties should go before the mediator with open mind and heart and see to it they don’t get dragged in a long drawn litigation. Let the mediation proceed, we shall wait for one more report,” the bench said.

In its order, the apex court also directed that the fees of the mediator shall be paid from the RK Family Trust and there should not be any further debate in this regard. “If the mediation fails, we will allow you all to proceed in accordance with law. But don’t allow that day to come,” the bench told the parties.

The top court had earlier appointed former Chief Justice of India D Y Chandrachud to act as a mediator in the dispute. On April 27, the top court sought a response from Priya Kapur and others on a lawsuit by Sanjay Kapur’s mother seeking directions to declare the family trust “null and void.” During the hearing, the SC also asked the parties to explore mediation to resolve the dispute over the family trust.

The 80-year-old Rani Kapur’s plea alleges that the trust, which was constituted in her name in October 2017, was a product of “forged, fabricated and fraudulent” documents.

The legal proceedings over control of the estate and assets are pending before the Delhi High Court, and the petition before the top court seeks a status quo on alienation of all the properties of the trust.

In the lawsuit, Rani Kapur has sought a direction to permanently restrain the defendants — her daughter-in-law Priya Kapur and others, including grandchildren — from utilising or acting in furtherance of the RK Family Trust in any manner whatsoever.

Her plea submitted that she was the sole beneficiary of the entire estate of her late husband, Surinder Kapur, who was the promoter of various businesses, including the ‘Sona Group of Companies’, and a “systematic fraud” was committed on her when the assets were transferred to the ‘RK Family Trust’. Till the time of his death, Sunjay never confirmed to Rani Kapur that she had actually been divested of all her rights, assets and legacy and never provided a copy of the purported RK Family Trust to her, the plea claimed.

“By means of a complex web of illegal transactions undertaken by the defendant Nos. 1 to 9 (Priya Kapur and others) in an unfortunate collusion with the plaintiff’s now deceased son, late Mr. Sunjay Kapur, all the plaintiff’s assets vest in one fraudulent trust titled — RK Family Trust, without her knowledge,” the lawsuit said.

Sunjay Kapur passed away on June 12, 2025, after collapsing during a polo match in England. He reportedly suffered a cardiac arrest. A plea by Karisma Kapoor’s two children challenging the authenticity of the purported will of their late father is also pending in the Delhi High Court, with the kids accusing his wife Priya Kapur of being “greedy”.