Promoters place trust in new tax havens
MUMBAI: A business family based in New Delhi, with interests ranging from real estate to infrastructure, which never contemplated any succession planning, recently set up a family trust in Malta, Europe. The family trust has around 20 beneficiaries, with only a couple of them based outside India. The family, whose estimated net worth is around Rs 1,500 crore, is looking to gradually transfer all the assets to the family trust, according to people familiar with the matter. They fear government agencies might harass them as one of their companies may default on a loan in coming months due to “stress in the system”. “The family wants to insulate some part of the assets from any bankruptcy or tax litigation in the country,” said a person close to the development.