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The Bombay High Court on Friday dismissed a petition filed by the grandchildren of Vijaypat Singhania challenging a 1998 family settlement which divided the assets between Vijaypat’s two sons: Madhupati and Gautam.
Madhupati’s children – Ananya (29), Rasaalika (26), Tharini (20) and Raivathari (18) – had filed a suit in the High Court earlier this year challenging the agreement signed on December 30, 1998, between their parents - Madhupati and Anuradha – and Vijaypat, who headed the Raymond textiles empire, whereby the parents had given up their own as well as their children's rights over ancestral properties.
The grandchildren had challenged the agreement and termed it as prima facie illegal and claimed that they and their parents were treated with utmost discrimination and gross injustice and against the traditions of the Singhania family.
Madhupati’s children had questioned the transfer of assets from Vijaypat to Gautam Singhania, now Chairman of Raymond. Vijaypat had transferred his 37% holding worth Rs 1,166 crore (as of today) in Raymond to Gautam in a gift deed early this year, triggering the litigation.
The four children sued their grandfather and Raymond. Their parents, Madhupati and Anuradha, are a party to the suit, saying Vijaypat had no authority to sign away their children’s ancestral rights. The case is based on Hindu family law, which dictates inheritance issues, among others.
The grandchildren had challenged the 17-year family agreement Madhupati and Anuradha had signed in December 1998 with Vijaypat, giving up their own and their children’s rights to the Raymond empire, as well as various other assets, including real estate. The grandchildren claimed they were informed of the agreement only when the youngest of the four turned 18.
In 1998, Dr Singhania and Madhupati decided to part ways after differences in management styles. As per the agreement, Madhupati settled in Singapore with his family and gave up his share in the family wealth. They also gave up the shares of their then-minor children.
Raymond was trading flat at Rs 454 a share on the Bombay Stock Exchange.
