Gautam Singhania: Domestic abuse claims threaten India tycoon’s fortune
Getty ImagesA 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.
“Most companies don’t survive beyond three generations. Raymond is a fifth-generation business and Nawaz is keen that her daughters have a future in it,” a source close to Ms Modi told the BBC.
Ms Modi is also said to be keen to remain a member of the board, and has no objections to her husband managing the business after their divorce.
She has received public support from her father-in-law, veteran businessman Vijaypat Singhania, who has in the past accused his son of driving him out of his own house in 2017, leaving him with little money to survive on – allegations Mr Singhania has previously denied.
Split wide open
The acrimonious feud between the couple first came to light when a video of Ms Modi being denied entry into a company Diwali party went viral in November.
She’s since made disturbing allegations of physical assault on her and their minor daughter by the scion of the almost hundred-year-old Raymond Group.
Mr Singhania didn’t agree to speak with the BBC about the allegations.
In response to a request for an interview, his spokesperson directed the BBC to his statement which said, “I have chosen not to comment on the reports in media about matters pertaining to my personal life as maintaining the dignity of my family is paramount to me.”
Ms Modi had told Sangeeta Waddhwani, a celebrity journalist and former executive editor of Hello! India magazine, that she’d suffered “grievous injury” including what she claimed was a broken sacrum bone at the hands of her husband, and had had to get help from the family of Mukesh Ambani – Asia’s richest man – to get the police on the scene.
Three non-cognisable offences – where a warrant is needed for arrest and the court’s permission is required for an investigation – have been filed against Mr Singhania at two different police stations in Mumbai.
Ms Modi “continues to be restrained from resuming work” because of her physical condition, Ms Waddhwani told the BBC.
Mr Singhania has told employees and shareholders in an internal email – which the BBC has seen – that “it is business as usual” at Raymond even in these difficult times.
The company’s shares have begun to rebound after coming under heavy selling pressure when the dispute first became public. But the saga has thrown up uncomfortable questions about domestic abuse allegations at the highest echelons of Indian society, and potential lapses in corporate governance at the country’s biggest family-run conglomerates.
Business as usual
In a filing to the exchanges earlier this month, Raymond’s independent directors said they were committed to protecting the interest of minority shareholders. They added that disputes between the two promoter directors did not affect the capacity of the chairman and managing director (MD), Gautam Singhania, to manage the affairs of the company. They also said investigations into matrimonial disputes lay “beyond the remit” of the independent directors.
But several questions raised by corporate governance and proxy advisory firms such as Institutional Investor Advisory Services (IIAS) in an open letter to Raymond’s board remain unanswered. These include the possibility of criminal liability on the company in the light of these events or the ability of Mr Singhania to discharge his role as chairman and MD amid the personal distractions.
Concerns have also been raised about whether there are adequate controls in place to ensure that company funds – which Ms Modi has alleged were being used by her husband for personal benefit – are being protected. Raymond has not responded to the BBC’s question about this charge.
“She has acted as a whistle-blower, so Raymond’s audit committee will be mandated to address the issue. They can’t hide behind the fact that it is a marital dispute,” Hetal Dalal, president of IIAS, told the BBC, saying she was “disappointed” with the company’s response.
The board has appointed a senior independent legal counsel, Berjis Desai, for advice, but sources have told the BBC that Ms Modi isn’t happy with the appointment.
While the company’s share price decline has been arrested for now – it was down 20% at one point – there are questions about how much of this is because of the exuberance in the broader market vis-a-vis a recovery due to the board’s letter.
A dispute between promoters is expected to remain a continuing overhang on the business. A split could lead to a number of scenarios playing out that could impact shareholders, experts say, including a change in voting patterns or even ownership.
A senior corporate lawyer told the BBC that the matter is unlikely to be resolved soon, given that most of Mr Singhania’s net worth lies in his 49% stake in Raymond. This person said it would be difficult for the businessman to preserve his shareholding while also making a large monetary settlement without having to borrow or monetise assets.
They should ring-fence the business by immediately “separating themselves” from Mr Singhania, Ms Dalal said, adding that retaining a chairman accused of domestic abuse also raised broader questions about corporate culture within the organisation, which the board needed to address.
‘Best-kept secret’
“Violence against women is not an aberration per se in some of the richest families in India,” Shobhaa De, a prominent writer and social commentator, told the BBC. “This is corporate India’s best-kept secret.”
Ms De says she is cynical about how the affair will conclude, given the advantages powerful people have.
“It is easy to silence scrutiny in this country,” she said.
Promoters – who typically hold a controlling block of shares in many listed entities in India – are known to exert significant influence in the appointment of board members. This has led many to question how truly independent they are, and their ability to express dissent or fulfil governance obligations.
Ms De thinks it will be a difficult, exhausting fight.
“It remains to be seen how strong Nawaz’s negotiating powers are,” she says, adding that she thinks “the story of the complete man will remain complete” – a reference to the catchy brand tagline that’s defined Raymond since the 1980s.
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Bondee CEO addresses China links as Singapore-based social app relaunches with augmented reality
For example, an avatar leaves a virtual post that resembles a chat bubble or Post-It at a physical location. It will be pinned there for 180 days, and other Bondee users who visit the physical location during that period can see what other avatars are doing or have left behind on the AR interface.
Bondee is now focusing on user growth and user experience, with monetisation less of a priority, said Ms Yu. But it hopes to leverage the AR features for brand and advertising partnerships in time to come, such as by driving foot traffic to a physical retail store through a virtual store on the app.
All this takes place against a mixed prognosis for the metaverse, whose death has been declared at various times by various media outlets this year.
Disney and Microsoft reportedly shut their metaverse units earlier this year, while Meta’s metaverse-oriented Reality Labs has bled millions in operating losses. At the same time, Apple is gearing up for the launch of its first mixed-reality headset, priced at a cool US$3,499.
Ms Yu said Bondee believes AR technology can bridge the gap that remains to a metaverse fully realised in virtual reality. AR overcomes some of the challenges of virtual reality, like complicated and expensive equipment, and the mental health effects of being online, she added.
“AR is the combination of the real world and the virtual world, and it actually makes the real world richer,” said Ms Yu. “Our mission is to inspire real-world discovery and bring enjoyment through exploration.”
As of Thursday, Bondee was ranked 186 on the social networking chart of Apple’s App Store, and had been downloaded more than 5 million times on Google Play.
PM to court Japanese investment
Srettha to promote Thai EV industry
PUBLISHED : 15 Dec 2023 at 04:44
Prime Minister Srettha Thavisin will meet on Friday with leading carmakers in Japan to convince them to invest in Thailand’s electronic vehicle (EV) industry.
The prime minister on Thursday flew to Japan for the Commemorative Summit for the 50th Year of Asean-Japan Friendship and Cooperation.
He was accompanied by a delegation of cabinet ministers, including Foreign Affairs Minister Parnpree Bahiddha-Nukara and Transport Minister Suriya Jungrungreangkit.
Before his flight, the PM spoke at the Royal Thai Air Force’s Wing 6, where he outlined his expectations for the trip, saying this was his first visit to Japan after assuming the premiership.
“There will be several matters that need to be discussed. There will also be meetings with Cambodian Prime Minister Hun Manet. I will also join in a private dinner with Prince Abdul Mateen of Brunei, who is about to get married next month,” Mr Srettha said.
“Talks will also be held with major Japanese companies, especially those from the automotive industry, as well as Panasonic and many others. I will try to encourage their additional investment, especially in the EV industry in Thailand.”
The prime minister said that several Thai businessmen would also accompany him on the trip, and they would hold talks with their Japanese counterparts. They include Pornwut Sarasin, president of Honda Automobile (Thailand), and Kalin Sarasin, chairman of the Board of Directors of Toyota Motor Thailand Co.
Asked whether Thailand’s economy will improve, Mr Srettha said: “The country will see the light [at the end of the tunnel].
“There is always hope for solving economic problems. The government carries the weight of the expectations of more than 60 million people,” he said.
“The government’s duty is to continue efforts to turn the economy around.”
Mr Srettha went on to say that Japan has made substantial investments in Thailand over the past 50 years.
During his visit, talks will be held to strengthen bilateral trade and investment, he said, adding that the government will issue a visa-free policy to facilitate travel for Japanese businesspeople seeking to invest in Thailand.
According to his schedule, the prime minister will today meet with the Japanese Minister of Economy, Trade and Industry and will then deliver a speech at the Thailand-Japan Investment Forum.
He will then hold talks with businessmen from Japan’s leading companies, such as Toyota Motor Corporation, Honda Motor, Suzuki, Nissan, Mitsubishi, Isuzu, Mitsui and Kubota.
Mr Srettha will attend the summit on Sunday. The following day, he will have an audience with the Japanese Emperor and Empress at the Imperial Palace before returning to Thailand.
Work on rail tracks to Laos to end in ’28
PUBLISHED : 15 Dec 2023 at 04:00
The Nong Khai-Vientiane section of the Thai-China high-speed rail (HSR) project is expected to be completed in 2028, according to Deputy Transport Minister Surapong Piyachote yesterday.
Mr Surapong said the project’s committee has agreed to expedite work on the 7.3-kilometre section, which is estimated to cost around three billion baht. The State Railway of Thailand (SRT) has commissioned a feasibility study on the project, he added.
The SRT will pick the final design next year, and the bidding process for the project will begin in 2025, he said.
The Thai section of the Thai-China HSR project will span 606 kilometres, connecting Nong Khai and Bangkok.
The first phase of the project, which is 28.6% completed, will see 253 kilometres of tracks laid out between Bangkok and Nakhon Ratchasima at a cost of 179 billion baht.
According to the official timeline, the project should have progressed to about 50%, but delays caused by land expropriation problems have slowed down the construction.
The ministry is also waiting for the result of the assessment regarding the project’s impact on the World Heritage sites, which is required by the United Nations Educational, Scientific, and Cultural Organisation, he said.
Meanwhile, the feasibility study on the section between Nakhon Ratchasima and Nong Khai has been completed. The ministry is still waiting for the SRT to submit the environmental impact assessment (EIA) for the project, he said. Once the sections are completed, it will help speed up cargo and passenger movements between Thailand and China.
Better rate for retirees ‘important’
PUBLISHED : 15 Dec 2023 at 04:00
Most candidates competing for seats on the new Social Security Board have highlighted the importance of raising the pension rate for retirees in the social security system as well as improving transparency and efficiency in managing the Social Security Fund (SSF).
Scheduled to take place on Dec 24, 14 new board members will be elected by the more than 800,000 people who are workers in the social security system, eligible to vote in this election, and have already registered to do so.
Of the 14 board members, seven are in the quota of employers’ representatives and the others represent employees. Over 240 people have registered to compete in this election, 61 from the employer side.
These candidates were invited to a recent seminar jointly organised by the Puey Ungphakorn School of Development Studies and the Thai Labour Museum Foundation to showcase their vision regarding what they aim to do if elected.
Many candidates agreed the pension should be raised from 3,000 baht a month to at least 4,500 baht.
The former is currently the maximum monthly rate. It is calculated from 20% of the recipient’s last monthly salary of 15,000 baht before retirement. The law stipulates that 15,000 baht is the ceiling from which to conduct the 20% calculation.
However, the candidates argued that 3,000 baht is nowhere near enough to keep up with the runaway cost of living. Many retirees say it is insufficient to live on without finding more sources of income with which to survive.
Chinnachot Saengsang, a candidate from the Council of Thai Labour, said the monthly pension should be raised to at least 4,500 baht or 30% of the last salary received of 15,000 baht.
If possible, the 15,000-baht ceiling should be raised to 18,000 baht, he said.
Piyarach Samata, a candidate representing a labour group called Social Security for Thai Workers, echoed Mr Chinnachot’s views, saying the monthly pension should also be adjusted every three to five years to keep up with inflation.
On top of that, transparency and efficiency in managing the SSF also needs to be improved considerably to ensure the fund has sufficient money in its coffers to finance future expansions of social security benefits, he said.
Somluck confronts sex assault allegations
KHON KAEN: Olympic medalist Somluck Kamsing has turned himself in to local police to face four charges, including attempted rape, in connection with a sexual entanglement with a 17-year-old girl.
Pol Lt Col Suparerk Suwanraj, the deputy chief investigator of Muang district police, said the 50-year-old former boxer turned himself in at 12.30am yesterday, accompanied by his elder brother and a close associate.
Somluck was subsequently charged with taking a minor, aged above 15 but less than 18, from parents or guardians, taking a minor for an indecent act, committing an indecent act, committing an indecent act against a minor, and attempted rape.
Even though he publicly apologised to the victim and her family, Somluck denied all the charges, Pol Lt Col Suparerk said.
He was released on condition that his lawyer prepare a statement clarifying what transpired and submit it to police investigators within 15 days.
He said the police would issue a summons for a motorcycle driver, reportedly a close friend of Somluck’s, who allegedly transported the girl and Somluck from an entertainment venue to a hotel. He will be charged with conspiracy in the alleged crime.
The driver was identified as a 47-year-old man named Paekko.
The teenage girl, whose name was withheld, filed a complaint with police accusing Somluck of sexual assault. She said that after meeting him at a pub in Khon Kaen, Somluck took her to a hotel where she was sexually assaulted. The incident occurred at about 3.30am on Dec 10.
Yesterday, deputy national police Pol Gen Surachate Hakparn said Somluck should have admitted to the charges as it could lighten any punishment in the case if he is found guilty.
His social contribution as an Olympic medalist would also likely be considered in deciding a punishment.
The senior police officer said the accounts given by witnesses and the evidence presented to investigators incriminated Somluck.
The girl also told police she had been sexually violated despite having resisted Somluck’s advances.
Body fluids were collected as evidence and taken for examination by the Central Institute of Forensic Science.
Investigators were waiting for the results.
Pol Gen Surachate said an allegation that the girl may have plotted her encounter with Somluck with the intent to blackmail him could not mask the fact that the former boxer should know better than getting involved inappropriately with a girl whom he suspected could be underage.
Meanwhile, two women who appeared to accompany the girl at the nightclub went on a livestream on Wednesday to clear up any public misunderstanding regarding their involvement.
Both said they met the girl for the first time that night, as she knew one of their friends.
They said the victim joined the former athlete after returning from a trip to the bathroom during their night out at the pub.
After the pub closed, they asked the girl to go with them instead of leaving with the boxer, a suggestion that left the girl “unimpressed”, they said.
Both said they had no clue why the girl was filing a complaint with the police and affirmed they were both older than 17.
11 sectors to help generate 4 trillion baht
PUBLISHED : 15 Dec 2023 at 04:00
The government is seeking to promote Thailand’s soft power globally in 11 industries to generate 4 trillion baht, Commerce Minister Phumtham Wechayachai says.
He made the remarks as he presided over the opening of a seminar on empowering business operators through the use of soft power. Also present was Paetongtarn Shinawatra, the leader of the ruling Pheu Thai Party and chair of the national committee on soft power development.
Mr Phumtham said the global economy has been rapidly changing as a result of several factors, including the disruption caused by Covid-19 as well as the ongoing conflict among global powers.
Thailand needs to adjust how it steers its economy accordingly, he said while noting that intellectual property is important in boosting trade with other countries.
The government has come up with the One Family One Soft Power policy to ensure the country’s rich culture gains more global recognition.
“The policy is aimed at creating more than 20 million jobs and generating 4 trillion baht per year through 11 industries including tourism, festivals, sports, cuisine, film, music, arts, books, gaming, design and fashion. Brand innovation and design will be used to promote important products in the global market,” Mr Phumtham said.
He added that the Department of International Trade Promotion led a delegation of Thai business operators at Anuga 2023, the world’s largest trade fair for food and beverages, in Germany in October, achieving trade deals worth more than 5.3 billion baht.
Ms Paetongtarn said that the government’s policy to promote the country’s soft power is key to boosting the economy and helping Thais earn more income.
“Soft power shows the country’s ability to influence others without having to force them,” she said.
House panel to visit Thaksin
Committee to verify ex-PM’s condition
The House committee on police affairs has promised to visit former prime minister Thaksin Shinawatra — who is currently serving a prison sentence for graft in a premium ward at the Police General Hospital — sometime in the first two weeks of January, according to committee chairman Chaichana Detdacho yesterday.
Mr Chaichana made the pledge in response to growing doubts as to whether Thaksin is really seriously ill and still requires intensive care outside of the prison as claimed by the Department of Corrections (DC).
Thaksin has been staying at the hospital since Aug 22, one day after he was sentenced to eight years in jail — which has since been reduced to a year following a royal pardon from His Majesty the King — for graft carried out during his tenure.
The Democrat MP for Nakhon Si Thammarat said the visit will take place after Justice Minister Tawee Sodsong, along with the permanent secretary for justice and the director-general of the DC are summoned to answer the committee’s questions on Thaksin’s hospital stay.
However, no exact date has been set so far, he said.
The Justice Minister and other relevant high-level officials will be questioned because the committee didn’t get a clear answer from Nassathi Thongpralard, chief of the Bangkok Remand Prison, and Dr Samart Muangsiri, a doctor at PGH, who were summoned by the House committee on Thursday, said Mr Chaichana.
The doctor told the House committee Thaksin is suffering from high blood pressure, a clogged blood vessel and Hepatitis B, said Mr Chaichana, who said he found it hard to believe as Thaksin was still seen drinking wine and dancing to rap music before he returned to Thailand.
Pol Col Sirikul Srisanga, spokeswoman for the PGH, meanwhile, declined to elaborate on Thaksin’s current health condition, saying the information is confidential and could only be revealed to the patient’s relatives and the DC’s officials.
The House committee has launched an inquiry into Thaksin’s condition and DC’s controversial handling of the situation, following a petition filed by Wachara Petchthong, a former Democrat list-MP who threatened to pursue charges of dereliction of duty against the House committee if it fails to respond to his petition.
Mr Wachara said yesterday he would ask the Supreme Court to decide whether Thaksin is eligible to be detained outside of prison under the new rules which came into effect on Tuesday.
Dr Somphop Sangkhutkaeo, chief inspector of the DC, insisted the new regulation wasn’t intended to benefit Thaksin or any other parties, despite the timing of the announcement.
More importantly, he said, even if Thaksin were to benefit from the new rules, he won’t walk out of prison anytime soon, as there are many steps which still need to be done, including a survey of all prisons in the country to determine who should be included in the programme.
Once the survey is completed, the list of eligible inmates would be forwarded to a DC committee responsible who would vet the list. Authorities also still need to draw up a list of non-prison detention facilities where eligible inmates could go to,” he said.
In another development, a movement group calling itself the network of students and people reforming Thailand yesterday petitioned the DC to transfer Thaksin back to the department’s own healthcare facility for recovery.
The group also called on the government to clarify whether the new rules on detention would actually apply to Thaksin or not.
The group made the call in response to a remark by one of Thaksin’s daughters, which suggested the ex-premier was still recovering from his illnesses.
Pheu Thai leader Paetongtarn Shinawatra said she personally believed the DC’s new regulation wasn’t intended for any specific individuals.
Whether Thaksin would benefit from this new rule as widely speculated by the public, she said she really didn’t know.
As his daughter, she said, she admitted that the faster her father is released, the better it would be for her and her family.
“After all, the best we could do now is keep offering each other moral support. My father has contributed greatly to the country. I wish he’ll stay strong and be a good adviser to me when he is released,” she said.
Prinn dodges charge of molestation
PUBLISHED : 15 Dec 2023 at 04:00
The Criminal Court yesterday acquitted Prinn Panitchpakdi, a former deputy leader of the Democrat Party, in a case in which he was accused of committing an indecent act on a 17-year-old girl in 2018 due to the statute of limitations having expired.
According to the prosecution’s lawsuit, in the daytime of April 25, 2018, while travelling in a van, Mr Prinn was accused of holding the girl’s left hand while touching the girl’s thigh with his free hand. This allegedly happened in full view of the public, and the minor was unable to deter the molestation. The incident occurred in Bangkok’s Din Daeng district.
He was charged with committing an indecent act against a minor aged over 15 but less than 18 years old and taking a minor away from her parents for an act of indecency.
The defendant denied the charges. He was released on bail.
Following an examination of the evidence presented by the prosecution and defence, the court found the alleged offences took place in a private van fitted with curtains and dark films and there was a curtain between the driver’s and passenger compartments.
Therefore, what happened could not be seen by outsiders. Moreover, the statute of limitations in an indecency case is only three months. Since this case took place in 2018, it expired years ago.
As for the charge of taking a minor away from her parents, the court learned that the alleged offence had taken place while the defendant was taking the girl in a van from an office to a condominium.
When the girl asked Mr Prinn to drop her by the side of the road so she could take an electric train, the defendant agreed to her request. So, there was no evidence to the charge the defendant taking a minor from her parents, the court ruled. The court acquitted him of all charges.
Mr Prinn has been indicted for numerous sexual offences against women.
In one, a court on Sept 29 sentenced him to four years in jail and ordered him to pay 2 million baht in damages after finding him guilty of sexually assaulting Hathairat “Anna” Vidhyaphum. He was later released on bail.
Gold card can cover some gender surgery
PUBLISHED : 15 Dec 2023 at 04:00
LGBTQ+ people who are members of the universal healthcare scheme can undergo gender-affirming surgery (GAS) if they are diagnosed with gender dysphoria by a psychiatrist, according to Dr Jadet Thammathataree, secretary-general of the National Health Security Office (NHSO).
He said the NHSO wanted to clarify an exception to the universal healthcare scheme, better known as the gold card, that means it does not cover cosmetic surgery, which has led to doubts about whether GAS falls into that category.
“The universal healthcare scheme in fact covers GAS for treatment purposes if patients are diagnosed with gender dysphoria,” he said.
The operation will be a treatment and a necessity for the patient, he said.
He gave one example dating back to 2020 when a hospital provided GAS for a patient. The NHSO approved the cost of the operation because it was considered a necessary treatment in that case.
About 100 people undergo gender-affirming surgery every year. If any are diagnosed with intersexuality and need to correct their atypical genitalia, they can use the benefits of the gold card, Dr Jadet said.
He said the key is to be diagnosed by a psychiatrist first. If the psychiatrist determines their untreated gender dysmorphia poses a psychological or emotional risk, they will likely approve the operation.
Gender-affirming surgery without a medical diagnosis is categorised as plastic surgery, he said.
The NHSO plans to provide a full-service package including mental care, hormonal treatment, facial feminisation procedures, breast surgery, and vaginoplasty soon.