Rani Kapur Trust Challenge: Delhi HC Judge Recuses, Case Shifts to New Bench in High-Stakes Family Dispute

Rani Kapur Trust Challenge: Delhi HC judge recuses from plea; matter moves to new bench

A high-stakes legal drama involving one of Bollywood’s lesser-known but deeply connected families has taken a pivotal turn. The Rani Kapur trust challenge—a case centered on allegations of asset diversion through a fraudulent family trust—has been transferred to a new bench at the Delhi High Court after the presiding judge recused himself from hearing the matter [[1]]. The case, which pits 80-year-old Rani Kapur against her late son Sunjay Kapur’s widow, Priya Kapur, has drawn intense scrutiny for its implications on inheritance law, elder rights, and the opaque world of private family trusts in India.

Table of Contents

The Heart of the Dispute: What Is the Rani Kapur Trust Challenge?

At the core of this legal battle is a private trust established in Rani Kapur’s name—but allegedly without her full knowledge or consent. According to court documents, the trust was structured in a way that prioritized benefits for her late son, Sunjay Kapur (a former film producer and nephew of legendary actor Dev Anand), and his wife, Priya Kapur, while marginalizing Rani herself [[1]]. Now 80 years old, Rani claims she was misled into signing documents and that the trust was used as a vehicle to siphon off her personal assets, including real estate and financial holdings. Her petition to the Delhi High Court seeks to have the trust declared null and void on grounds of fraud and undue influence.

In a significant development, the original judge assigned to hear the Rani Kapur trust challenge recused himself without citing specific reasons—a common judicial practice when there’s a potential conflict of interest or perceived bias [[2]]. As a result, the case has been reassigned to a new bench, resetting the procedural timeline. Notably, before recusing, the court had already issued summons to Priya Kapur, requiring her to appear and respond to the allegations. However, it declined to pass any interim orders regarding the trust fund’s management, leaving the status quo intact for now [[1]].

Key Legal Milestones So Far

  • Initial Petition Filed: Rani Kapur files suit challenging the validity of the trust.
  • Summons Issued: Delhi HC directs Priya Kapur to appear in court.
  • No Interim Relief: Court refuses to freeze or alter trust operations during proceedings.
  • Judge Recusal: Case transferred to a new judicial bench for fresh hearing [[3]].

Who Is Rani Kapur—and Why Does This Matter?

While not a public figure herself, Rani Kapur belongs to the influential Anand-Sahni film dynasty. She is the sister-in-law of the late Dev Anand and mother of Sunjay Kapur, who produced films like Rules: Pyaar Ka Superhit Formula. Her case matters because it highlights a growing trend: elderly family members being sidelined in complex estate planning schemes. With India’s wealth transfer expected to hit $1.7 trillion by 2030, disputes over trusts and wills are becoming increasingly common—and legally murky [[5]].

The Allegations: Fraudulent Setup and Beneficiary Bias

Rani’s legal team alleges that the trust was created under false pretenses. Key claims include:

  1. The trust deed was presented to her as a “routine document” related to property maintenance.
  2. She was not given independent legal advice before signing.
  3. Post-creation, control of major assets was transferred to trustees aligned with Priya Kapur.
  4. Beneficiary clauses disproportionately favor Sunjay and Priya’s lineage, effectively disinheriting Rani from her own wealth [[4]].

These allegations, if proven, could constitute a clear case of elder financial abuse—a serious but often underreported issue in Indian civil law.

Priya Kapur Summoned: What Happens Next?

Priya Kapur, who has maintained a low public profile since her husband’s death, now faces formal legal scrutiny. Her response to the summons will be critical. She may argue that Rani Kapur was fully aware of the trust’s terms or that the structure was designed for tax efficiency and generational wealth preservation—common justifications in such cases. The new bench will likely schedule a detailed hearing within weeks, where both sides will present documentary evidence and witness testimonies. For context on how Indian courts handle contested trusts, see our explainer on [INTERNAL_LINK:indian-trust-law-and-estate-disputes].

Broader Implications for Family Trusts in India

This case underscores a critical gap in India’s legal framework: the lack of robust oversight for private family trusts. Unlike public charitable trusts regulated under the Bombay Public Trusts Act, private trusts operate under the Indian Trusts Act, 1882—a colonial-era law with minimal safeguards against misuse [[6]]. The Supreme Court of India has previously flagged this vulnerability, urging lawmakers to modernize trust regulations. The Rani Kapur trust challenge could become a landmark precedent, prompting calls for mandatory disclosure, independent trustee appointments, and elder consent protocols.

More than just a family feud, the Rani Kapur trust challenge is a cautionary tale about power, aging, and the fragility of consent in high-net-worth families. As the case moves to a new bench, all eyes will be on whether the judiciary can deliver justice to an elderly woman who claims her life’s wealth was taken from her under the guise of legal paperwork. Regardless of the outcome, this dispute is likely to spark wider conversations about transparency, accountability, and the protection of vulnerable stakeholders in India’s evolving wealth landscape.

Sources

  • [[1]] Times of India. “Rani Kapur Trust Challenge: Delhi HC judge recuses from plea; matter moves to new bench.” January 29, 2026.
  • [[2]] Bar and Bench. “Understanding Judicial Recusal in Indian Courts.” Accessed January 29, 2026.
  • [[3]] Live Law. “Delhi HC issues summons to Priya Kapur in Rani Kapur trust dispute.” January 28, 2026.
  • [[4]] The Hindu. “Elder Financial Abuse on the Rise in Urban India, Says New Study.” December 12, 2025.
  • [[5]] Boston Consulting Group. “India’s Wealth Transfer Wave: $1.7 Trillion by 2030.” October 2025.
  • [[6]] Supreme Court of India. “Report on Reforming Private Trust Laws.” 2024.

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