India Tycoon Gautam Singhania’s Fortune at Risk as Domestic Abuse Claims Surface

• Gautam Singhania, a textile magnate, and his estranged wife Nawaz Modi are reportedly in a high-profile divorce case.
• Singhania may have to surrender 75% of his $1.4 billion fortune, a significant portion of his publicly listed Raymond Group.
• The dispute is currently undergoing mediation by two family members, one from each side.

In a high-profile divorce case involving flamboyant Indian textile magnate Gautam Singhania and his estranged wife Nawaz Modi, there are indications that Singhania may have to surrender a significant portion—75%—of his substantial $1.4 billion (£1.1 billion) fortune. Both Singhania and Modi serve as board members and promoter shareholders in the publicly listed Raymond Group, a prominent consumer brand in India.

Modi, a fitness coach, known for her high-profile lifestyle, is reportedly not willing to compromise on a lower settlement amount, contrary to some reports suggesting the initiation of more “realistic” settlement discussions.

The dispute is currently undergoing mediation by two family members, one from each side. The proposed 75% forfeiture of Singhania’s wealth remains a viable option, according to sources close to the mediation process reported to the media.

“She says he has agreed to 75% in front of numerous people – friends, mediators, lawyers, and chartered accountants. There’s no going back on it,” one source said, adding that Ms Modi insisted that an irrevocable trust should be formed where the wealth was transferred and secured for her two daughters’ future.

“Close to 96% of the net worth of the promoters of India’s wealthiest families is parked in trusts,” said Rishabh Shroff, partner at Cyril Amarchand Mangaldas, a Mumbai law firm. “These structures are increasingly attractive to wealthy business families, to shield their assets and insulate their businesses from insolvency, family or creditor disputes.”

Mr. Singhania wants to set up a trust where he would be the only person in charge and contributor. However, Ms. Modi is against this idea.

“Speaking as a neutral third party, I don’t think she should agree to a trust structure where she has no voice or say on how it is run or governed. She will want to be a co-trustee with certain rights and a beneficiary,” Mr Shroff said.

“Most companies don’t survive beyond three generations. Raymond is a fifth-generation business and Nawaz is keen that her daughters have a future in it,” Ms Modi told the source.

Ms. Modi wants to stay on the company’s board even after the divorce, and she’s okay with her husband continuing to run the business. Interestingly, her father-in-law, veteran businessman Vijaypat Singhania, has publicly supported her.

He has previously accused his son (Gautam Singhania) of forcing him out of his own house in 2017, leaving him with insufficient funds to live on. It’s worth noting that Gautam Singhania has denied these allegations in the past.

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