The Independent Directors of Raymond have hired an independent senior legal counsel to advise the company amid the ongoing marital dispute between Chairman and MD Gautam Singhania and Nawaz Modi, the company said in a stock exchange intimation on Friday.
“The Independent Directors are alert to ensure that the matrimonial disputes between the two promoter directors do not in any manner affect the capacity of the Chairman & Managing Director to manage the affairs and business of the Company,” the statement read.
“The ID have decided to retain Berjis Desai, senior independent legal counsel, who has no links with the promoters or the Company, for advising the ID. The ID would like to assure the stakeholders that the ID shall act dispassionately,” it said.
They said that neither the law or any corporate governance standard requires the ID to enquire into, investigate, or delve into the merits or otherwise, of such matrimonial disputes, which lie beyond the remit of the ID.
“The ID shall continue to exercise utmost vigilance in watching the evolving situation and shall not hesitate to proactively initiate measures, the moment required, to protect the interests of all stakeholders.”
Proxy advisory firm Institutional Investor Advisory Services (IiAS) recently asked the independent directors of Raymond to consider appointing an interim CEO and investigate the allegations of assault by Singhania on his wife and daughter, and the use of company funds for personal benefit.
In an open letter to the company’s five independent directors, IiAS also suggested they ask Singhania and his estranged wife Nawaz Modi, also a board member, to take time off from their responsibilities as board members. IiAS said Modi has alleged that she and her daughter were physically assaulted by Singhania in September 2023. She also alleged that company funds were being used for Singhania’s personal benefit (CEO excesses) — and that she was acting as a whistle-blower of sorts.
Late November, Singhania assured employees and board members that it is “business as usual” in the company and that he is fully committed to its smooth functioning.
In an internal mail to the employees and the board members of Raymond, Singhania, who announced separation from his wife Nawaz earlier this month, said he has chosen not to comment on the reports in media “about matters pertaining to my personal life”, saying “maintaining the dignity of my family is paramount to me”.
“However, I remain resolute as Chairman & Managing Director and am fully committed towards the smooth functioning of the company and its business. Even in these difficult times for me, I assure you that at Raymond, it is business as usual,” he asserted in his mail.
