BEHIND THE SUITS: A FAMILY WAR AT RAYMOND

By: Tanish Agarwal

Family disputes are peculiar—bitter and, almost always, messy. Gautam Singhania and his father Vijaypat Singhania have been embroiled in a series of bitter feuds over the decades. The family behind the iconic Raymond Group has been involved in numerous legal battles over the years, highlighting their struggles for control, property disputes, and personal conflicts.

The Raymond Group is one of India’s most iconic apparel and textile companies, founded by Vijaypat Singhania. Under the leadership of his son Gautam Singhania, Raymond became the world's largest producer of suiting fabric. But the company has lost Rs 1,500cr market value after Gautam’s disputes with his father Vijaypat and his wife Namaz Modi.

Vijaypat announced in 2015, that he would be gifting his 37.17% stake in Raymond, worth almost ₹1,041 crore, to his son Gautam. In a statement issued to the exchanges, it was stated that this would help maintain continuity of administration and align ownership interests. He believed that he was preserving his billion-dollar Indian textile company. However, since then, their relationship has collapsed spectacularly. “The way my flesh and blood turned against me for the sake of power and control is nothing short of betrayal.”- wrote Vijaypat Singhania in his autobiography. What actually happened after the transfer of this share - according to Vijaypat Singhania, the behavior of Gautam Singhania changed completely. There was a subsidiary company of Raymond Group which used to hold JK House, a 36-storey building consisting of duplexes. Vijaypat had divided these flats amongst himself, his son, his brother’s wife, and her sons. But Gautam had other plans, he refused to transfer ownership of his father’s duplex after its completion.

Dr. Vijaypat Singhania, later filed a petition in the Bombay High Court alleging that he was not given the possession of the duplex in the upscale 36-storey JK House. On September 7, 2018, Vijaypat was removed from his position as chairman emeritus of Raymond Group. According to the Mumbai Mirror, the letter was written by Thomas Fernandes, the company secretary. The letter cited Vijaypat’s “unparliamentary and derogatory language” used in getting his messages to the board members for his removal. However, even though the letter said that family feuds were not part of this decision, it  the gap between father and son in the end. A charge of theft and criminal trespass against his son and other Raymond Group officials was reported by Vijaypat. He said that items deemed "invaluable and important" had been taken out of his Mahindra Towers room. According to reports, he had reported the event to the police first, but his visit was not noted. Then he went to the courts and magistrate ordered an investigation. Vijaypat claimed that property title deeds, investment documents, and income tax returns were stolen. Allegedly, the gold medal that was awarded to him by the Indian President along with that a few pictures and artworks were also missing.

Gautam has been denying all allegations from his father. “It was the right thing to do. My responsibility as a son is different from my role as chairman of Raymond. Here is a board member (Vijaypat) who is using his position on the board to take company assets,” Gautam told The Economic Times. He also said that he had offered for his father to live with him on numerous occasions, and that “I will forever be indebted to Vijaypat for the rest of my life. Anybody who thinks I have kicked him out is wrong. I am clarifying it. He is still my father. Many people have tried to intervene but to no avail”.

Amidst all the mess, another feud broke out in the family when Gautam Singhania announced that he was separating from Namaz Modi, his wife, and a Raymond board member for the past 32 years. This happened after a video surfaced online where Namaz Modi was allegedly not allowed to enter the Raymond Diwali party after receiving an invitation. Namaz put allegations of physical assault on the Raymond Chairman and allegedly demanded 75% of his 11,000-crore empire. These allegations erased Rs. 1500 crores off the company’s market value which further concerned the board of directors and shareholders of the company.

There seems to be no end to the war between the Singhania. With Vijaypat spending most of his time with the lawyers trying to win legal battles against his son with Namaz fighting for her share of the wealth, Gautam is trying to whitewash his image for the sake of the company. He on his Twitter account, posted a picture and captioned it, "Happy to have my father at home today and seek his blessings. Wishing you good health Papa always." Vijaypat denied speculations of settlement between them after this post. This saga has not only strained the relations in the family but also has left a deep impact on the legacy of the Raymond Group.