The Murugappa family on Sunday announced a settlement arrangement between themselves — nearly three years after Valli Arunachalam, the eldest daughter of former group chairman late M.V. Muruguppan, was denied a board seat in the group’s holding company, Ambadi Investments Ltd.

In a statement on Sunday, the family said its members have agreed to settle the disputes and differences between the family branch of M.V. Murugappan — including Valli Arunachalam, her sister Vellachi and their mother — on one side and the rest of the family members.

The statement did not disclose details of the arrangement, citing confidentiality.

It was silent on whether Valli Arunachalam will be given a board seat in the holding company or the combined 8.15 per cent stake held by the sisters and their mother will be bought at a "fair price’’.

They were bequeathed this stake in Ambadi Investments after the demise of Murugappan in September 2017. Arunachalam had subsequently asked the family to either purchase this stake or give a board seat in Ambadi.

“The family arrangement is envisaged primarily to bring about amity and maintain goodwill amongst the members of the Murugappa family, and to maintain the overall harmony within the family, in this generation, as well as in the future,” the statement said.

The Murugappa family members first discussed and concluded the terms of the family arrangement amongst themselves at a meeting in the presence of their respective advisors, the statement said.

The understanding was recorded on Sunday by way of a memorandum entered into by the members of the family with the family branch of late M.V. Murugappan. “The family members are committed to undertaking the necessary transactions to effect the family arrangement within the next 90 days,” it added.

The parties have agreed that legal proceedings between the family groups will be withdrawn as per the terms of the arrangement after completing all agreed steps specified in the settlement.

The statement said “no listed company forming part of the Murugappa Group is a party to the family arrangement, and nothing in the family arrangement relates to the management or control of, or grants any special rights to the parties in, any such companies”.

Quoting representatives of the family members, the statement further said that ``the family arrangement ensures that all the issues between the members will be setled, and they are happy that they have agreed to resolve this amicably. The terms of the family arrangement itself are confidential’’.

The Murugappa group has 11 listed entities, including Carborundum Universal Ltd, Cholamandalam Investment and Finance Company Ltd, Coromandel Engineering Company Ltd, Coromandel International Ltd, EID Parry (India) Ltd and Tube Investments of India Ltd.

It may be recalled that in September 2020, the shareholders of privately held Ambadi Investments had rejected a resolution pertaining to the appointment of Valli Arunachalam, the fourth generation Murugappa family member to its board. The development led to Arunachalam accusing the family of gender discrimination.

“It is evident that the family cannot tolerate women in their boardrooms, and they have showcased their considered view in this regard. It is very unfortunate that the AIL (Ambadi Investments) shareholders, the overwhelming majority of whom are also board members, are not able to understand what contributions women can make on the board. It is clear indication that gender bias exists at the highest levels of the Murugappa group,” she had then said in a statement.

She had sent a legal notice to the Murugappa family members, Ambadi Investments and others.