Hari Harilela sued over trust fund

Couple breached duties, writ claims

The head of Hong Kong's most prominent Indian clan is being sued for alleged mismanagement of a $6 million trust fund.

Hari Harilela and his wife, Padma Harilela, were named in a High Court writ claiming the couple breached their fiduciary duties as trustees.

The plaintiffs, Shaon Lal Hiranand, Ravine Lal Hiranand and Priya Lal Hiranand, claim that in 1998, the defendants - their aunt and uncle - agreed to approach the trio's father, Lal Manghanmal Hiranand, to 'procure' money to hold in trust for the plaintiffs. Around June 3, 1998, the plaintiffs' father transferred $6 million to the couple to be held for the plaintiffs' benefit only, the writ says. But in November 2000, the father wrote to the couple asking them to remit to him $2 million from the fund and asking that they retain the remaining $4 million as security for his liabilities.

The writ claims the defendants breached trust and/or their fiduciary duty by transferring the $2 million to the father without the plaintiffs' knowledge or consent.

In a letter dated March 31, 2003, the plaintiffs gave notice to the trustees to dissolve the trust, asking them to 'account to the plaintiffs and to pay over and/or transfer all trust assets'.