As part of a family settlement following the couple’s divorce, Nawaz Modi Singhania, 53, the estranged wife of billionaire industrialist Gautam Singhania, reportedly claimed 75% of his alleged $1.4 billion net worth for herself and her two daughters – Niharika and Nice, Economic Times reported
Singhania recommended creating a family trust and transferring the family’s assets to it, with him acting as the sole managing trustee, even though he is believed to have generally agreed to the requirement.
ET reported that his family members would be allowed to inherit the assets after his passing. Nawaz supposedly finds this intolerable.
People familiar with trust laws said a trust consists of three main stakeholders: the settlor, who contributes funds to the trust, the trustee, who acts as administrator, and the beneficiary.
A Mumbai-based tax specialist, on condition of anonymity, said, “A trust is primarily about relationship rather than the law. A trustee can also be a settlor. Not all three, though. That would negate the intent and come under contract law provisions.”
Gautam Singhania announces separation from wife
Billionaire Gautam Singhania on November 13 announced separation from his wife Nawaz, saying that both have decided to go their separate ways. Singhania, 58, married Nawaz Modi, daughter of lawyer Nadar Modi, in 1999.
“This Diwali will not be the same as many in the past. It is my belief that Nawaz and I will follow different paths from here,” Singhania, chairman and managing director of textile conglomerate Raymond Ltd, said on social media.
He married Nawaz, who was 29 years old in 1999, after eight years of courtship.
“32 years of being together as a couple, growing up as parents and always being each other’s strength… we went through with commitment, determination, faith as the two most beautiful additions in our lives came along,” he said.
“As I reflect on the unfortunate developments in the recent past, there has been a lot of unsubstantiated rumour, and gossip around our lives fanned by ‘not so well wishers,'” he wrote. “I am parting ways with her as we continue to do what is best for our two precious diamonds Niharika and Nisa.”
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Updated: 20 Nov 2023, 12:37 IST