In a high-profile divorce case that has captivated the attention of financial circles, Nawaz Modi Singhania, the estranged wife of Raymond Chairman and Managing Director Gautam Singhania, has reportedly demanded a substantial 75% of his estimated $1.4 billion net worth as part of the divorce settlement. The request, made with the financial well-being of their two daughters in mind, has initiated discussions about the future distribution of the Singhania family’s wealth.
Gautam Singhania, acknowledging Nawaz’s plea, has proposed the creation of a family trust to manage and transfer the family’s assets. This proposal, however, has encountered resistance from Nawaz, setting the stage for a complex legal battle.
In a departure from conventional trust structures, Gautam’s proposed family trust designates him as both the settler and trustee. While legally permissible, this arrangement has become a point of contention in the ongoing negotiations.
Legal advisors, including Haigreve Khaitan of Khaitan & Co and Mumbai-based law firm Rashmi Kant, have been engaged by both parties to navigate the intricacies of the divorce settlement. Mediation attempts are reportedly underway, led by Akshay Chudasama, Managing Partner at Shardul Amarchand Mangaldas & Co, in the hopes of achieving a reconciliation or a mutually agreeable resolution.
The discussions, still in the early stages after several weeks, have not yielded final decisions, according to sources cited in The Economic Times.
Gautam Singhania, in a public announcement on social media, confirmed the separation from his wife of 32 years, citing a commitment to pursuing different paths. Beyond the personal aspects of the separation, the complex web of family involvement in Raymond, a diversified conglomerate with a market value of nearly Rs 11,900 crore, adds layers of complexity to the divorce proceedings.
Raymond’s annual consolidated income of Rs 8214.7 crore and a profit after tax (PAT) of Rs 536.9 crore in FY23 highlight the substantial financial stakes involved. The Singhania family’s influence in the company extends beyond Gautam and Nawaz, with various entities holding significant shares.
While the legal battle unfolds, the fate of Raymond’s leadership and financial structure hangs in the balance, with potential implications for one of India’s renowned conglomerates.
