Gautam Singhania-Nawaz Modi separation could be a long-drawn-out affair

The demand made by Nawaz Modi Singhania for 75 per cent of the wealth of her estranged husband Gautam Singhania, Chairman and Managing Director of Raymond, could be a little complicated given how the law around it is structured. Business Today spoke to a few lawyers familiar with the case to get a better understanding of the issue. 

The couple was married for 32 years before announcing their separation. Singhania’s net worth, according to media reports, is estimated at $1.4 billion. A large part of that is housed in real estate. The JK House property in south Mumbai is said to be the most valuable, with reports pegging its value at around Rs 6,000 crore. The 30-storeyed structure is spread over an area of 16,000 square feet, with floors dedicated to Gautam Singhania’s car collection. According to available information, he owns a Lamborghini Gallardo LP570 Superleggera, Lamborghini Murciélago, Lotus Elise convertible, Nissan Skyline GTR, Honda S2000, Ferrari 458 Italia, Audi Q7, among others. This could not, however, be independently verified and it is not clear how much that is worth. 

On the specific issue of how much Nawaz Modi can claim, lawyers explained that she should “be able to maintain the same lifestyle at the time of getting divorced.” Besides, the liabilities of the offspring (in this case, there are two daughters, Niharika and Nisa) will be the responsibility of the father (Singhania). This is a substantial difference from how it is in the US or UK, where the wife “can claim and will get” an equal share of the net worth. The logic put forth is that the development of the husband is because of companionship leading to half the wealth, therefore, being a fair demand.  

India is a different terrain, governed by the Hindu personal law as a default if both parties are Hindus. By birth, Modi Singhania is a Parsi but having got married to a non-Parsi, she ceases to be governed by the law of that religion—it comes into force only when both the parties are Parsis. Assuming Modi Singhania did not convert to Hinduism post-marriage, this issue will be decided by a Special Marriage Act. “Given the high-profile nature of this case, there is a good chance that there will be a settlement behind closed doors. There is a good chance this will take time to resolve,” said one lawyer. 

In an exclusive interview to Business Today, Gautam Singhania’s father Vijaypat Singhania, former Raymond Chairman, spoke on a host of issues around the separation. “What I don’t know is whether being a Parsi—is she covered by the Hindu Marriage Act?” he said on a query on Modi Singhania’s demand for a 75 per cent share. Meanwhile, the Raymond share, in the last five days of trading is down almost eight per cent. 

Also Read: Gautam Singhania-Nawaz Modi feud: Shareholders jittery, proxy advisories fear further impact on Raymond stock