Raymond Group Chairman Gautam Singhania's Wife Demands 75% Of Wealth In Divorce Settlement: Report

In a new twist to Raymond group chairman and billionaire industrialist Gautam Singhania's divorce row, Nawaz Modi Singhania, Singhania's estranged wife has reportedly sought 75% of his $1.4 billion net worth as a divorce settlement. According to The Economic Times report citing people in the know, Nawaz Modi has sought 75% of Gautam Singhania's reportedly $1.4 billion net worth for her two daughters Niharika and Nisa, and herself, as part of a family settlement, following the couple's separation.

While the Raymond group chairman is believed to have mostly agreed to the demand, he has proposed setting up a family trust and transferring the family's wealth and assets to it where he would be the only managing trustee. Upon his death, his family members would be allowed to bequeath the assets after him, said the report quoting sources. However, this proposal is reportedly unacceptable to Nawaz.

Usually, there are three main parties in a trust: a settler, who contributes assets to the trust; a trustee, responsible for administration; and a beneficiary. In the family trust as proposed by Singhania, he would play the role of both settler and trustee. While such a structure is permissible under the law, it has generated contention in the ongoing negotiations because one of the three parties has to be different. It is believed that if all three parties are from the same family and share a relationship then it would defeat the purpose altogether.

One should note that already there are several trusts within the group including JK Trusts, Smt Sunitidevi Singhania Hospital Trust which also owns 1.04% of Raymond Ltd. Gautam Singhania is the Chairman and Managing Trustee of it, while Nawaz Singhania is a trustee.

32 years after staying in the marriage, last week Indian billionaire Gautam Singhania publicly announced his separation from his wife. In a post on X (formerly Twitter), the chairman and managing director of Raymond said "As I reflect over the unfortunate developments in the recent past, there has been a lot of unsubstantiated rumour mongering, and gossip surrounding our lives fanned by 'not so well wishers'," he wrote. "I am parting ways with her while we continue to do what is the best for our two precious diamonds Niharika and Nisa."

He however didn't reveal much detail regarding the reason behind the separation.

Gautam Singhania family feud:

Two years ago, Vijaypat Singhania, the former chairman of Raymond Ltd, one of the largest makers of worsted suiting fabric in the world and a leader in India, published his autobiography 'An Incomplete Life'. The title seemed to be a play on the famous tagline "The Complete Man" from the ad campaign of Raymond's clothing brand.

Vijaypat Singhania had reportedly said that the title was more about his own life which had attracted a lot of attention due to disagreements between him and his children. He was locked in a vicious public dispute with his son, Gautam Singhania, over property for many years.