The estranged wife of billionaire industrialist and chairman and managing director of Raymond Group Gautam Singhania, Nawaz Modi, demanded 75 per cent of his net worth as a family settlement for their two daughters, Niharika and Nisa, and for herself.
Singhania's net worth is reported to be over Rs 11,000 crore.
She cited the financial well-being of Niharika and Nisa as the primary motive for seeking the settlement.
According to Economic Times, Singhania may have agreed to the agreement and suggested setting up of a family trust of which he would be the only managing trustee. All the assets and wealth of the family would be transferred to the trust. After his death, his family members would inherit his wealth.
However, Nawaz hasn't reportedly agreed to such a setup.
A trust must have three main parties—a settler, who puts money, a trustee who acts as an administrator, and finally, the beneficiary, people familiar with trust laws observed.
“A trust is about a relationship first, law second. A settler can also be a trustee. But not all three. That would defeat the purpose. These come under contract law provisions," ET quoted a tax specialist as saying.
Gautam Singhania, on Monday, announced that he has separated from Nawaz after 32 years of being together.
"32 years of being together as a couple, growing as parents and always being a source of strength to each other...we traversed with commitment, resolve, faith as along came the two most beautiful additions of our lives."
"As I reflect over the unfortunate devlopments in the recent past, there has been a lot of unsubstantiated rumour mongering, and gossip surrounding our lives, fanned by not so well wishers," Singhania had said in a social media post, announcing their separation.
