Raymond Boss Gautam Singhania Accused of Assault Amid Divorce Row; How Will It Impact His $1.4 Billion Net Worth?

Gautam Singhania, the billionaire chairman and managing director of the largest integrated manufacturer of fabric in the world Raymond Ltd., has found himself embroiled in controversy over his divorce. Earlier this month, Singhania announced on X (formerly Twitter) that he has separated from his wife Nawaz Modi Singhania, ending their 32-year relationship.

Following the announcement, the industrialist, whose net worth is reportedly over $1.4 billion, faced allegations of assault and fraud from Modi. The feud has taken a twist with an Indian proxy advisory firm requesting the company's independent directors to conduct a probe into the accusations, as per reports.

Nawaz’s allegations against Singhania

Nawaz Modi, who is also a board member at Raymond, demanded a divorce settlement worth 75% of Singhania’s $1.4 billion net worth. Last week, Modi also alleged that Singhania had physically assaulted her and their daughter in September 2023. She alleged that she was "beaten up and her minor daughter Niharika was punched" for about 15 minutes, per a Business Today report.

Later in an interview to India Today TV, Modi indicated that Singhania had called off the settlement.

Since Modi serves on the boards of several companies, including Raymond, a proxy advisory firm Institutional Investor Advisory Services (IIAS), took her allegations into consideration and urged the independent directors of textile company Raymond Ltd to launch an investigation into its managing director. 

Raymond founder Vijaypat Singhania’s comments

The billionaire MD’s father, Vijaypat Singhania, who founded Raymond, also opened up about the family feud. It is worth noting that Gautam Singhania and Vijaypat Singhania have been in a feud of their own. Vijayapat accused Gatuam of tricking him into gaining control of the company.

Vijaypat had transferred all of his 37% stake at the Raymond Group to his son Gautam in 2015. In an interview with Business Today, Vijaypat said that he regrets the "stupid" mistake of giving Gautam "everything". He had previously alleged that he was emotionally blackmailed into giving Gautam the control of his company and even threw him out of their family home.

The former textile magnate also alleged that Gautam had agreed to give him some part of the company, but backed out, leaving him only some money to survive. He further said that Nawaz is making a failed attempt to get 75% of Gautam’s wealth as he would never give her that.

Impact of the family feud on Raymond Ltd

Since Singhania made the announcement of his divorce on social media,  the company’s stock has been in freefall. Since November 13, the company that operates from textiles to the real estate sector, has lost market share worth over Rs1,700 crore (approximately $203 million), as per a Livemint report. Before the announcement, the company was valued at Rs 12,660 crore (approximately $1.5 billion), Business Today reported citing Bloomberg data.

What’s Next For Gautam Singhania And His Divorce Battle

As per reports and laws, the battle of Gautam Singhania and Nawaz Modi separation could be a long-drawn-out affair. Since Singhania is a Hindu, and Modi is Parsi, their marriage was recorded under the ‘Special Marriage Act’ and not the ‘Hindu Marriage Act’. Thus, their divorce settlement will be governed by the laws of the region the case is heard.

Further, a large part Singhania’s wealth is housed in real estate and his car collection. This, however, will be independently verified. Thus, with complicated laws and nature of Singhania’s possessions, Nawaz’s claim of 75% of Singhania’s fortune hangs in the mix.

However, as per a Business Today report, lawyers suggested that the responsibility of their two daughters and their maintenance will certainly fall upon Singhania. Further, Nawaz may end up getting half of Singhania’ fortune but there is a high chance that the case will be settled out of court.