Raymond Group Chairman and Managing Director (CMD) Gautam Singhania and his estranged wife, Nawaz Modi, have initiated settlement talks amidst the ongoing separation proceedings, which took an ugly turn after the latter levelled allegations of assault.
While Nawaz Modi had earlier demanded 75 per cent of Gautam Singhania’s $1.4 billion net worth as settlement for their two daughters and herself, both parties have now agreed upon a more “realistic settlement” demand, reported The Economic Times.
Legal sources close to the couple revealed that lawyers from both sides have engaged in talks to explore potential terms of a settlement in recent days. When Nawaz Modi had floated the 75 per cent settlement demand, Singhania had reportedly proposed the establishment of a trust to manage the wealth – a suggestion deemed unacceptable by Modi.
Later in an interview with India Today TV, Nawaz Modi said Singhania denied the settlement demand, saying “do whatever you want”.
‘Realistic’ settlement demand
Legal sources associated with Singhania, who were quoted in the ET report, said while both parties are inclined towards a more realistic settlement compared to the initial demand for a 75 per cent share, the specifics are still under deliberation.
In response to the ongoing developments, Raymond appointed Berjis Desai, a senior independent legal counsel, to advise the board regarding the dispute between Singhania and his wife. The board clarified that the matter lies outside their remit but acknowledged Desai’s role in monitoring developments and keeping the board informed.
The independent directors of Raymond have been closely monitoring the situation concerning the company and minority shareholders over the past few weeks. They reiterated their commitment to safeguard the interests of non-promoter shareholders, employees, and stakeholders, emphasizing their role in the filing with the stock exchange.
Regarding the allegations of physical abuse against Singhania by his wife, officials close to the matter suggest that the Raymond board may lack a basis to investigate, as Nawaz Modi has not filed a formal complaint. They consider it a personal matter, highlighting that no formal complaint or FIR has been registered by either party as of the current date.
Until Friday of the previous week, the stock witnessed a decline, but it rose by over 4 per cent on the last trading day, closing at Rs 1,563.
The stock has climbed further today, rising 1.35 per cent to Rs 1,583.80.