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UK’s richest family jailed after court found they exploited staff

Damning details have been exposed about the UK’s richest family after four members were sentenced to jail.

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A Swiss court handed jail sentences to four members of Britain’s richest family, the Hindujas, on Friday, branding them “selfish” for exploiting Indian staff at their Geneva mansion.

Lawyers for the members of the Swiss-Indian family — who were not present in court — said they would appeal the verdict.

The defendants were acquitted of human trafficking but convicted on other charges in a stunning verdict for the family, whose fortune is estimated at 37 billion pounds ($70 billion) by The Sunday Times.

Prakash Hinduja, 78, and his wife Kamal Hinduja, 75, each got four years and six months, while their son Ajay, 56, and his wife Namrata, 50, received four-year terms, the presiding judge in Geneva ruled.

They were convicted of “usury” for having taken advantage of their vulnerable immigrant staff to pay them a pittance.

Inside UK’s richest family

More has now been revealed about the family, which the court heard paid a servant just seven Swiss francs (A$10) to work for up to 18 hours a day, seven days a week.

The family’s famed patriarch, Srichand, died in 2023 at the age of 87.

Srichand was chairman of the family business group, which owns a variety of companies across his native India, including in banking, commercial vehicle sales and chemicals.

In the UK, where the family largely reside, the family bought several high-value properties, including a vast 18th Century home near Buckingham Palace and the historic Old War Office building in Whitehall.

They also acquired parts of the defunct British motoring giant British Leyland in 1987.

Srichand and his brothers Gopichand, Prakash and Ashok built the company up after it was established by their late-father Parmanand.

Namrata Hinduja, left, and Ajay Hinduja, second from right, arrive at court. Picture: Gabriel Monnet/AFP
Namrata Hinduja, left, and Ajay Hinduja, second from right, arrive at court. Picture: Gabriel Monnet/AFP

Paramanand started out trading spices, carpets and tea in 1914 in an area of British India in what is now Pakistan.

Their first international branch was opened in Iran in 1919, before the company was forced to relocate to London by the Iranian Revolution in 1979.

Srichand and Gopichand co-chaired the group from London, while Prakash manages the company’s operations in Switzerland and Ashok is responsible for the Indian branch.

The family made mostly made their money in exports of oil and telecommunications equipment as well as their business dubbing Hindi films into Persian in Iran.

Employees ‘exploited’

“The employees’ inexperience was exploited,” Judge Sabina Mascotto said in her ruling.

“They had little education or none at all and had no knowledge of their rights. The defendants’ motives were selfish.”

She added that the Hindujas were motivated “by the desire for gain”.

The court acquitted them of the more serious charge of human trafficking, on the grounds that the workers had travelled to Switzerland willingly.

During the trial, the family were accused of bringing servants from their native India and confiscating their passports once they got to Switzerland.

‘More on their dog’

Prosecutor Yves Bertossa accused the Hindujas of spending “more on their dog than on their domestic employees”.

The family paid the household staff about 325 francs (A$544) a month, up to 90 per cent less than the going rate, the judge said.

“The four Hinduja defendants knew the weak position their employees were in and knew the law in Switzerland,” Judge Mascotto said.

Prosecutor Yves Bertossa referenced a budget document called “Pets”, which he said revealed that the family spent 8,584 Swiss francs in a year on their family dog.

Prosecutors have called for prison sentences of as long as five-and-a-half years and for the family to pay 3.5million Swiss francs (A$5.7 million) to a fund for compensating staff.

They have also demanded the family cover 1 million Swiss francs in court costs.

Staff contracts allegedly excluded reference to specific working hours or days off.

It was also claimed that employee passports were confiscated and they could not leave the house without the permission of their employer.

Case pursued due to ‘seriousness’

The family denied the allegations, claiming the prosecutors wanted to “do in the Hindujas”.

They had reached a confidential out-of-court settlement with the three employees who made the accusations against them, leading them to drop their legal action, the defence claimed.

Despite this, the prosecution had decided to pursue the case due to the seriousness of the charges.

Following the verdict, Mr Bertossa requested an immediate detention order for Ajay and Namrata Hinduja, claiming a flight risk.

The judge denied it, accepting the defence argument that the family had ties to Switzerland. It noted that Kamal Hinduja was hospitalised in Monaco, and the three other family members were at her bedside.

Both the elder Hindujas had been absent since the start of the trial for health reasons.

They were acquitted of human trafficking, but convicted on other charges. Picture: Gabriel Monnet/AFP
They were acquitted of human trafficking, but convicted on other charges. Picture: Gabriel Monnet/AFP

‘Not mistreated slaves’

A statement from the defence lawyers announcing the appeal said they were “appalled and disappointment” at the court’s ruling.

But it added, “The family has full faith in the judicial process and remains confident that the truth will prevail.”

The defence had argued that the three employees received ample benefits, were not kept in isolation and were free to leave the villa.

“We are not dealing with mistreated slaves,” Nicolas Jeandin told the court. Indeed, the employees “were grateful to the Hindujas for offering them a better life”, his fellow lawyer Robert Assael argued.

Representing Ajay Hinduja, lawyer Yael Hayat had slammed the “excessive” indictment, arguing the trial should be a question of “justice, not social justice”.

He said salaries by themselves did not accurately reflect staff pay because they were also given board and lodgings.

Lawyers argued that the salary “can’t simply be reduced to what they were paid in cash”.

The court was also told that 18-hour days were an exaggeration.

“When they sit down to watch a movie with the kids, can that be considered work? I think not,” Ajay’s lawyer said.

Ajay told the court he did not have detailed knowledge of employees’ working conditions as the Hinduja Group in India handled recruitment.

But he said staff are now no longer paid informally and hiring is done locally through a third party.

Namrata Hinduja’s lawyer Romain Jordan had also pleaded for acquittal, claiming the prosecutors were aiming to make an example of the family.

He argued the prosecution had failed to mention extra payments made to staff on top of their cash salaries.

“No employee was cheated out of his or her salary,” Mr Assael added.

With interests in oil and gas, banking and healthcare, the Hinduja Group is present in 38 countries and employs around 200,000 people.

— With The Sun

Originally published as UK’s richest family jailed after court found they exploited staff

Original URL: https://www.adelaidenow.com.au/business/uks-richest-family-sentenced-to-jail-for-exploiting-staff-at-swiss-villa/news-story/7445cc69d5086a938f937d4789e235bf