Vijaypat Singhania says son Gautam breaking up Raymond, supports daughter-in-law
The founder of Raymond Group, Vijaypat Singhania, has expressed deep disappointment over his son Gautam Singhania "breaking up" the company, calling it his "stupid mistake" to give everything to his son. The 85-year-old founder of Raymond said, "He is breaking up Raymond. It breaks my heart. But I don't interfere." The former Raymond chairman's statement comes amid Gautam's bitter divorce battle with his wife, Nawaz Modi, who has demanded 75% of his fortune as part of the settlement.
Why does this story matter?
In 2015, Vijaypat handed over all of his stakes, around 37% worth over Rs. 1,000 crore, in the billion-dollar textile empire to Gautam. In return, the former was to receive the now 39-story JK House in Mumbai's Malabar Hill, worth Rs. 7,100 crore, for just Rs. 600 crore. After his son refused to meet his end of the deal, he filed a petition in the Bombay High Court, claiming that he was left to fend for himself.
Don't give away everything to children: Vijaypat's message to parents
The once strong father-son bond has deteriorated since Vijaypat handed over control of Raymond Group to his son. Vijayapat accused the son of cheating him out of the JK House and unceremoniously kicking him out of the company offices. Vijaypat claimed Gautam "backed out" after promising to give him some parts of the company. He sent out a message to other parents, warning them against "giving everything" to their children.
'Not my business to interfere between 2 grown-ups'
Commenting on his son and daughter-in-law's separation, he said, "It's difficult to describe what one goes through when you see your own family going through this kind of stress." He added that he never expected to see such a situation in his own family but clarified that it is not his business to interfere in what two grown-up people are going through. Modi said that her in-laws were supporting her while claiming that he beat her and their daughter.
Why is she fighting for 75%: Vijaypat on daughter-in-law
Addressing Modi's demand, Vijaypat noted that under the Hindu Marriage Act, 50% of the husband's holding automatically goes to the wife in a case of separation. He said, "Why is she fighting for 75%? Gautam is never going to give in because his motto is to buy everybody and buy everything." He added that by fighting like this, he doesn't think she'll get much unless she has a high-profile lawyer like Harish Salve, Mukul Rohatgi, or Kapil Sibal.
Depends on shareholders, bankers: Vijaypat on Raymond's future
When asked if the dispute could harm Raymond's reputation, Vijaypat said it depends on how shareholders, bankers, and stakeholders perceive the situation. He said that Raymond has a large number of mature, logical shareholders who can think for themselves and react quickly if they see something bad. The separation between Gautam and Modi has led to a Rs. 1,500 crore erosion of Raymond's market capitalization, with its stock declining 8% in the last five trading sessions.
