Gautam Singhania’s Many Different Faces, Raymond’s Managing Director’s Controversies – Father, Wife, Children And A Penchant For FastCars, Yatches And Planes

Raymond’s Chairman and Managing Director, Gautam Singhania, is known for his adventurous, luxurious lifestyle and has had a bitter past with his father and brother and is currently facing accusations of assault from his estranged wife, Nawaz Modi. 

Modi asserts that on September 9th, Singhania assaulted both her and one of their daughters in a fit of rage; according to Modi, Singhania reportedly assaulted her and their daughter, subjecting their minor daughter to about 15 minutes of physical harm.

This incident, as per Modi, is one of three instances of assault she claims to have endured at the hands of Singhania. 

Modi revealed that the acrimony between them began in December 2022, culminating in the September 9th incident. An argument over the use of the bathroom reportedly escalated into a physical assault by Singhania, resulting in injuries to both Modi and their elder daughter. 

Modi attempted to involve the police, but Singhania prevented their entry into their home; however, the intervention of their neighbours, the Ambani family, led to the registration of a non-cognizable complaint and Modi’s treatment at Reliance Hospital, where she was admitted to the intensive care unit.

Following the incident, Modi and her two daughters left the house, and she has been living with her parents since.

Additionally, Modi claims that Singhania forcefully ejected her from the company; she disclosed the details about their tumultuous relationship during the launch event of her book on natural ageing techniques,

The Response

Legal sources close to Singhania have indicated Gautam Singhania’s intention to pursue legal recourse to safeguard his family’s interests in response to these allegations.

Singhania, in a statement, expressed his desire to uphold his family’s dignity for the sake of their two daughters, refraining from further comments and urging respect for his privacy.

The public became aware of the couple’s discord when videos surfaced showing Modi being denied entry to the company’s Diwali Party. 

Subsequently, Singhania announced their separation on social media; recent reports suggest that the two parties are in negotiations, with both parties attempting to reach a settlement, Modi, aged 53, is seeking 75% of Singhania’s $1.4 billion net worth for herself and her two daughters.

In response, Singhania has proposed the establishment of a trust to manage the family’s assets, with him serving as the exclusive trustee throughout his lifetime; however, Modi deems this proposition unacceptable.

In an effort to secure financial stability for her daughters, Modi emphasized that her pursuit is grounded in her role as their mother and legal guardian, recounting Singhania’s past expressions of concern for their well-being and highlighting her current goal of seeking a fair settlement for herself and her children, proposing a distribution that ensures their financial security.

In addition to overseeing a network of fitness centers known as BodyArt, Nawaz Modi, a frontiersperson in aerobics and wellness in South Mumbai, holds a position on the board of directors at Raymond Ltd.

However, this is not the only controversy that has broken into headlines; Gautam Singhania has had an equally tumultuous relationship with his father.

The Background To Family Drama

The Singhania vs Singhania case revolves around Vijaypat Singhania, the 85-year-old who has been the driving force in establishing the Raymond Group and his two sons, Madhupati Singhania and Gautam Hari Singhania. 

In December 1998, the elder son, Madhupati, chose to sever ties with the family, relocating to Singapore with his wife and four children, subsequently entering into a Family Agreement relinquishing his and his children’s rights to the family property.

Gautam, the younger son, assumed the position of managing director of Raymond in July 1999, marking a period of significant growth for the company. 

Under Gautam’s leadership, Raymond’s revenue soared from ₹991 crore in 2001-02 to ₹5,332.61 crore in 2014-15, reflecting a nearly five-fold increase. However, the family dispute took a new turn in February, with Vijaypat announcing his decision to gift his 37.17% stake in Raymond, valued at almost ₹1,041 crore, to Gautam, a decision that would publicly haunt him two years later.

The unfolding events resembled a riches-to-rags story — a once prosperous tycoon facing a dramatic downturn in fortune, eventually leading to a hand-to-mouth existence. 

Vijaypat Singhania, in a petition to the Bombay High Court, sought possession of a duplex in the redeveloped 36-storey JK House on Malabar Hill, claiming that he had relinquished all his shares in the company to his son Gautam, only to find himself abandoned.

Singhania attributed his dire circumstances to his son, stating that despite his sacrifice, he was now left to fend for himself. Allegedly, the tycoon of yesteryear was unable even to afford a car and a driver, residing in a rented row house in Mumbai.

At the heart of the dispute the JK House, a building that initially stood at 14 storeys when unveiled in 1960; four duplexes were later transferred to a Raymond subsidiary, Parthian Holdings. 

In 2007, the decision was made to undergo redevelopment; according to a 2007 family agreement, Vijaypat Singhania, Gautam, and the widow and two sons of Vijaypat’s brother Ajaypat were entitled to purchase a duplex each in JK House post-renovation. However, the prices of the flats had soared.

During the June 2017 AGM, shareholders voted on a proposal to sell the flats to the tenants; Gautam, abstaining due to being a related party, recommended shareholders vote against the proposal, resulting in its rejection. Singhania’s advocates informed the court that despite bestowing his entire wealth upon his son, he was now being driven out of everything by Gautam. 

The dispute even spilled over into Vijaypat’s autobiography, ‘An Incomplete Life,’ which Raymond Ltd sought to restrain. The autobiography was eventually published in 2021, with Singhania expressing his disappointment, stating that giving away his life’s earnings to Gautam was not the conduct expected from a son.

Gautam refuted all allegations, claiming his father was being influenced by others and expressing a willingness to settle. A social media post from Gautam sparked rumors of potential reconciliation, where he shared his gratitude for spending quality family time with his parents.

Legal Entanglements With Older Son

In response to this development, Vijaypat announcing his decision to gift his 37.17% stake in Raymond, valued at almost ₹1,041 crore, to Gautam; Madhupati’s children filed a case against their grandfather, challenging the 1998 Family Agreement. 

They contested the agreement, claiming it ignored their rights as minors and sought a share in the family’s assets, including the Raymond brand and various properties.

The grandchildren argued that their parents had no authority to enter into an agreement on their behalf, asserting their natural inheritance rights. V jaypat, in turn, denied the merit of their claims, stating that Madhupati had been compensated as part of the Family Agreement.

The family dispute took a legal turn, with both sides presenting their arguments in the Bombay High Court. Allegations of financial impropriety, unfair treatment, and a contested family legacy became central themes in this complex legal battle.

Additional Considerations

The controversy deepened as Vijaypat was removed from the position of chairman emeritus in 2018 following allegations of “abusive and unparliamentary” behaviour; this development added another layer of complexity to the family dynamics and the ongoing legal battles.

Moreover, the conflict extended beyond the legal arena, with accusations of stolen documents and an attempt to halt the publication of Vijaypat’s memoir. 

Like Father Like Son

Gautam Singhania is known for his luxurious lifestyle and passion for fast cars, planes, and yachts. 

Interestingly, both father and son have a liking for adventure. Vijaypat Singhania has been an avid aviator who set many records. In 1988, he set a speed-over-time endurance record for microlight aircraft by flying solo from London Biggin Hill Airport in London to New Delhi over 23 days. 

He also holds the world record for altitude in a hot air balloon of 69,000 ft, which he set in 2005 at the age of 67. He bagged the Tenzing Norgay National Adventure Award in 2001 for his feats in aviation, and the Padma Bhushan.

Meanwhile Gautam Singhania too is an aviation enthusiast in addition to having a deep interest in car racing. Singhania inherited most of his wealth from his father and has a net worth of more than Rs 11000 crore.

Additional Facts

• JK House: The second-tallest building in Mumbai, valued at Rs. 6000 crore. I has five floors for his car collection, a spa, helipad, and two pools.
• M Y Ashena: A tri-deck luxury yacht made from Burma Teak wood. I was designed by traditional boat builders from a village in Gujarat and used by Liz Hurley for her wedding.
• Races: Singhania has won many races in his sports cars.

 

The Present-Day Financial Standing Of Raymond Ltd

As the family dispute unfolds, the company remains a prominent player in the Indian textile and clothing industry, maintaining its stature as a leading fashion and clothing brand.

As of FY23, Raymond reported a robust financial performance, with a revenue of Rs. 83.37 billion, marking an increase of approximately Rs. 20 billion compared to the previous fiscal year. 

The company demonstrated a substantial profit, exceeding Rs. 5 billion, showcasing a consistent upward trajectory in profit numbers over recent years. Raymond has established itself as a formidable force in the textile industry with over 1,100 exclusive stores in India and a presence in more than 350 cities worldwide. 

The company’s achievements include receiving the Association of Wall and Ceiling Industry Excellence in Construction Quality Awards in 2023, highlighting its commitment to quality and innovation.

Listed on the Indian stock exchange, Raymond commands a significant market share, particularly in the suiting business, where it boasts over 60% market dominance.