Negotiations for a settlement are underway between Raymond Group chairman Gautam Singhania and his wife Nawaz Modi after their separation, according to legal sources familiar with the situation. Attorneys representing both parties have engaged in talks over potential terms of an agreement in the past few days, two individuals with close knowledge of the matter told the Economic Times.
In the ongoing family settlement proceedings, the estranged wife of Singhania has demanded 75 per cent of the industrialist's approximate $1.4 billion wealth for herself and their two daughters. Singhania proposed the establishment of a trust to manage the assets, a proposition that Nawaz found unacceptable.
As per the report, officials close to Singhania stated that there is consensus on a more practical settlement compared to the initial request for a 75 per cent share. However, the specifics of the agreement are currently under discussion.
Raymond had appointed legal advisor Berjis Desai to handle the Singhania dispute, recognizing it was beyond the board's scope. In a filing, the board stated that Desai would oversee and update them on any developments.
Officials close to the matter have stated that Raymond might lack grounds to investigate the accusations of physical abuse against its CEO, given that Nawaz Modi has not lodged a formal complaint.
Until last Friday, the Raymond stock experienced a decline in the market, but it rebounded with a more than 4 per cent increase, settling at Rs 1,563. The significant erosion of shareholder wealth reflects investor apprehensions regarding the settlement claims made by Nawaz Modi.