The day after Diwali, the news of divorce of industrialist and Raymond Industries Chairman and MD Gautam Singhania came. He is going to divorce his wife Nawaz Modi Singhania after 32 years of marriage. Now the news is that his wife has set huge conditions for divorce and has demanded 75% of his total net worth from Gautam Singhania.
Gautam Singhania’s net worth is 1.4 billion dollars (about Rs 11,660 crore). In this context, Nawaz Modi Singhania has demanded Rs 8,745 crore from the Singhania family in lieu of divorce. Quoting sources having information about this, ET has reported that Nawaz Modi Singhania has asked for this amount from himself and his two daughters Niharika and Neesa.
Will Gautam Singhania agree?
Sources say that Gautam Singhania can broadly agree to this demand. But this accounting of property will not be done directly. Rather he has suggested forming a family trust. This trust will have the ownership rights of all the property and assets of the family. He will be the sole trustee of this trust. After his death, his family members will have the right to make a will. However, the chances of Nawaz Modi Singhania agreeing to this arrangement are negligible.
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Many trusts are already formed within the Raymond Group. These include J.K. Trusts and Smt. Sunitidevi Singhania Hospital Trust, which holds 1.04 per cent stake in Raymond Limited. Gautam Singhania is the chairman and managing trustee of this trust. Whereas Nawaz Modi Singhania is also a trustee.
How will their divorce be settled?
According to media reports, H. Khaitan of Khaitan & Partner has been made the legal advisor of Gautam Singhania in this entire matter. Whereas Rashmi Kant of Mumbai can become Nawaz’s lawyer. Legal experts say that it may be difficult for Gautam Singhania to remain the sole chairman and trustee by forming a family trust.
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According to the law related to forming a trust, there are three main parties to run a trust. These include a trust settlor, a trustee who is the administrative head, and a beneficiary. It is necessary for these three to be separate, and the same person cannot hold all three posts.
