Mumbai: Settlement talks have commenced between Raymond Group chairman Gautam Singhania and his wife Nawaz Modi following their separation, legal sources close to the couple said. Lawyers from both sides held discussions on possible contours of a settlement in recent days, two officials close to the matter said. Singhania’s estranged wife has claimed 75% of the industrialist’s estimated $1.4-billion wealth for their two daughters and herself, as part of a family settlement. Singhania suggested setting up a trust to hold the wealth, which was unacceptable to Nawaz.
Legal sources close to Singhania said both sides are agreed on a more realistic settlement compared to the demand of a 75% share, but details are being thrashed out.
Singhania and Nawa Modi did not respond to emails from ET.
Raymond earlier appointed Berjis Desai, senior independent legal counsel, to advise the board on developments arising out of the dispute between Singhania and his wife. The spat “lie(s) outside their remit,” the board said in an exchange filing last week. Desai will monitor developments in the matter and keep the board informed, officials said.
“Independent directors have, over the last few weeks, been monitoring the situation insofar as it affects the company and minority shareholders, and reiterate their commitment to protect, at all times, the interest of non-promoter shareholders, employees and stakeholders,” the board said in the filing.
Further, the Raymond board may not have any basis to probe the allegations of physical abuse against its CEO by his wife, as Nawaz Modi has not filed any formal complaint, said officials close to the matter. Therefore, it is evidently a personal matter, officials said.
Sept 10 Incident
Senior police officers told ET that on September 10 this year, both Singhania and Nawaz made calls to the police control room. Subsequently, a diary entry was made at the Gamdevi Police Station. The police say the victim needs to lodge a complaint if there are allegations of domestic violence.
“Around 10 am on September 10, a call was received from Singhania’s residence, JK House, located at Altamount Road. The caller identified himself as ‘Mr Singhania.’ Subsequently, another call was received at the control room by his wife. The police advised the lady to lodge a complaint. A police diary was made at the local police station. However, this wasn’t followed by any complaint by either side,” said a senior police officer.
“… in case of assault of wife by husband, which amounts to domestic violence, an FIR by the victim is a prerequisite for the police to commence a probe. In this case, no such complaint was lodged,” added the official.
Senior police officers told ET that no FIR has been registered by either party as of date.
Last month, Singhania announced that he was separating from his wife, shortly after these incidents came into the public domain.
Impact On Stock
The Raymond stock took a beating on the bourses till Friday last week, when it rose by over 4%, closing at Rs 1,563. There has been an erosion of nearly Rs 2,655 crore in stockholder wealth, highlighting concerns raised by investors on the settlement claims made by Nawaz Modi.
Proxy advisory firm IIAS had urged independent directors of Raymond to investigate allegations against Singhania, who had earlier sent an email to the board and employees, assuring them that business was proceeding as usual.
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