Breakdown In Settlement Discussions, Raymond Group Chief Gautam Singhania And Wife Nawaz Modi Reach Impasse
The ongoing separation conflict between Raymond Group Chief Gautam Singhania and his estranged wife, Nawaz Modi, has taken a significant turn as settlement talks collapsed, as reported recently. The couple, who announced their separation in November 2023, had been in negotiations over the division of Singhania's substantial wealth and custody arrangements for their daughters. However, sources now reveal that Modi has stood firm on her initial demands, leading to a breakdown in the discussions. The development now raises questions about the potential legal complexities ahead and the future course of the high-profile divorce proceedings.
Settlement discussions between Raymond Group Chief Gautam Singhania and his estranged wife, Nawaz Modi, have broken down, according to insiders familiar with the situation.
These sources revealed that Modi is standing firm on her initial request, which entails claiming 75% of Singhania’s estimated $1.4-billion fortune for their two daughters, Niharika and Nisa, as well as for herself.
Additionally, she is seeking custody of their minor daughter, asserting that Singhania has been exerting undue influence on the two girls.
The couple publicly declared their separation in November 2023.
Lawyers and accountants representing both parties are actively participating in the negotiations.
Initially, legal sources associated with Singhania indicated that a more reasonable settlement had been agreed upon, albeit still being finalized. However, officials close to the matter now assert that Modi’s abrupt reversal has derailed the otherwise progressing settlement talks.
Expressing surprise at Modi’s request for custody, especially given that one of the daughters is already 18 years old, an official remarked that such matters typically arise in court cases. Hence, the future legal direction of the case remains uncertain.
A spokesperson for Gautam Singhania refrained from specific comments, maintaining a silence on the circulating misinformation. The spokesperson emphasized their commitment to privacy, particularly out of respect for the couple’s two daughters, Niharika and Nisa.
Despite Singhania being a Hindu and Modi a Parsi, their marriage was solemnized under the Special Marriage Act, 1954.
Nevertheless, legal experts close to Gautam Singhania argue that the Hindu Marriage Act does not apply to their union since it is intended for individuals of the Hindu religion.
In a previous interview, Nawaz Modi alleged that her husband had been threatening their daughter, an international equestrian rider, warning her to comply with certain expectations or face a withdrawal of support for her sport, much like their grandparents were allegedly treated.
The Story So Far
Renowned Indian textile tycoon Gautam Singhania is facing potential financial repercussions in a high-profile divorce settlement with his estranged wife, Nawaz Modi.
The couple, both board members and promoter shareholders of the publicly listed Raymond Group, are in the midst of negotiations that could see Singhania relinquishing 75% of his substantial $1.4 billion fortune.
Contrary to reports suggesting more realistic settlement discussions, a source close to Modi asserts her unwavering stance on the 75% figure, with family members from both sides currently mediating the dispute.
Despite claims of Singhania’s agreement to the 75% division in the presence of various witnesses, Modi insists on the establishment of an irrevocable trust to safeguard her two daughters’ financial future.
According to Rishabh Shroff, a partner at Mumbai law firm Cyril Amarchand Mangaldas, such trusts are increasingly favored by wealthy families to shield assets and protect businesses from potential disputes.
However, a notable point of contention arises as Singhania expresses interest in being the sole trustee and settler, a proposal firmly opposed by Modi, who seeks a co-trustee role with specific rights as a beneficiary.
With a focus on securing her daughters’ involvement in the fifth-generation business, Raymond, Modi is reportedly committed to the company’s longevity.
Despite the divorce, she expresses a desire to remain a board member and has no objection to Singhania managing the business post-divorce.
Adding complexity to the situation, Modi has received public support from her father-in-law, veteran businessman Vijaypat Singhania, who previously accused his son of forcing him out of his own house in 2017, leading to financial challenges—an accusation Gautam Singhania has refuted in the past.
Exposed Rift
The contentious dispute between the couple was initially brought to public attention when a video of Ms. Modi being barred from entering a company Diwali party went viral in November.
Since then, she has made distressing claims of physical assault against her and their minor daughter by the scion of the nearly century-old Raymond Group.
Ms Modi, in conversation, detailed suffering “grievous injury,” including what she asserted was a broken sacrum bone caused by her husband. She claimed to have sought assistance from the family of Mukesh Ambani, Asia’s richest man, to involve the police.
Three non-cognizable offenses, requiring a warrant for arrest and court permission for investigation, have been filed against Singhania at two different Mumbai police stations.
In the interim, Singhania assured employees and shareholders that “it is business as usual” at Raymond, despite the challenging circumstances.
Although the company’s shares initially faced substantial selling pressure when the dispute became public, they have started to recover.
However, the ongoings has raised uncomfortable questions about allegations of domestic abuse in the upper echelons of Indian society and potential lapses in corporate governance within the country’s largest family-run conglomerates.
Guarded Reality
According to Shobhaa De, a prominent writer and social commentator, violence against women is not an anomaly within some of India’s wealthiest families.
She describes it as the best-kept secret of corporate India. De expresses skepticism about the eventual resolution of the affair, given the advantages wielded by influential individuals.
In her view, silencing scrutiny in the country is a straightforward task. Promoters, who typically hold a controlling stake in many listed entities in India, are known for exercising significant influence in the appointment of board members. This has raised doubts about their true independence and their capacity to express dissent or fulfil governance obligations.
De anticipates a challenging and draining battle. She notes that it remains to be seen how strong Nawaz’s negotiating powers are, stating that “the story of the complete man will remain complete,” making a reference to the iconic brand tagline that has defined Raymond since the 1980s.
