A high-profile divorce settlement between a flamboyant Indian textile tycoon, Gautam Singhania, and his wife, Nawaz Modi, could lead to him forfeiting 75% of his $1.4bn (£1.1bn) fortune.
Both Mr Singhania and Ms Modi are board members and promoter shareholders of the publicly listed Raymond Group, one of India’s best-known consumer brands.
The estranged fitness coach wife of the industrialist – who is known for his penchant for yachts, fast cars and private jets – is unwilling to settle for lower, a source close to Ms Modi has told the BBC, rebuffing news reports that the couple had initiated more “realistic” settlement talks.
Two family members from either side are mediating the dispute and the 75% figure is still very much on the table, sources have told the BBC.
“She says he has agreed to 75% in front of numerous people – friends, mediators, lawyers and chartered accountants. There’s no going back on it,” one source said, adding that Ms Modi was insistent that an irrevocable trust should be formed where the wealth was transferred and secured for her two daughters’ future.
“Close to 96% of the net worth of the promoters of India’s wealthiest families is parked in trusts,” said Rishabh Shroff, partner at Cyril Amarchand Mangaldas, a Mumbai law firm. “These structures are increasingly attractive to wealthy business families, to shield their assets and insulate their businesses from insolvency, family or creditor disputes.”
While Mr Singhania is reportedly keen on creating a trust where he is the sole trustee and settler, Ms Modi has opposed this proposal.
“Speaking as a neutral third party, I don’t think she should agree to a trust structure where she has no voice or say on how it is run or governed. She will want to be a co-trustee with certain rights, along with being a beneficiary,” Mr Shroff said.