New Delhi: Nawaz Modi Singhania, the estranged spouse of wealthy industrialist Gautam Singhania, has demanded a 75% share of his estimated $1.4 billion wealth in the divorce settlement, according to The Economic Times.
Her request, intended to ensure the financial stability of their two daughters — Niharika and Nisa — has already initiated conversations about how the family’s wealth will be divided in the future.
While Gautam Singhania has expressed his willingness to entertain Nawaz’s request, he has suggested the formation of a family trust to oversee and transfer the family’s assets.
In his proposal, Gautam would serve as the sole managing trustee, and family members could inherit the assets post his passing. However, Nawaz says this arrangement is unacceptable.
Typically involving a settler, trustee, and beneficiary, trust laws are central to this matter. In Gautam’s suggested family trust, he would assume the roles of both settler and trustee. Though legally permissible, this structure has sparked disagreement in the ongoing negotiations.
Legal advisors from Khaitan & Co and Rashmi Kant are reportedly assisting Gautam Singhania and Nawaz, respectively, in navigating the complexities of their divorce settlement, according to sources.
Amid the ongoing negotiations, Akshay Chudasama, Managing Partner at Shardul Amarchand Mangaldas & Co., is attempting to mediate between the couple, aiming for reconciliation or a mutually agreeable resolution.
Gautam Singhania announced the end of his 32-year marriage on social media platform X, without delving into the reasons but expressing the couple’s commitment to pursuing different paths.
Nawaz Modi, known for her involvement in the fitness industry through Body Art fitness centres, is a board member of Raymond Ltd., a diversified conglomerate valued at nearly ₹11,900 crore.
Raymond is renowned for its brands in textiles, apparel, denim, and consumer care, reporting an annual consolidated income of ₹8,214.7 crore and a profit after tax (PAT) of ₹536.9 crore in FY23.
The Singhania family’s connection with Raymond extends beyond Gautam and Nawaz, involving various entities holding significant shares. Gautam Singhania, serving as the Chairman and Managing Director, holds a 49.11 per cent stake through family members, trusts, and promoter companies.
Individual shareholdings include Nawaz Singhania owning 2,500 shares of Raymond, while Gautam Singhania holds 29 shares, as per Bombay Stock Exchange data. In the promoter group, J K Investors (Bombay) Limited possesses the largest shareholding at 29.83 per cent, followed by J K Investo Trade (India) Limited with 12.43 per cent.