Institutional Investor Advisory Services (IIAS), an Indian proxy firm that provides voting recommendations on shareholder resolutions, on Tuesday, asked the independent directors of Raymond Ltd to initiate a probe into the allegations of assault made against the firm's managing director Gautam Singhania by his ex-wife Nawaz Modi Singhania.
Nawaz Modi had alleged that her ex-husband physically assaulted her and their daughter in September.
She also accused the billionaire industrialist, a devotee of Lord Venkateswara, of forcing her to make the trek to Tirupati temple without food and water. According to media reports, in an audio clip, she is heard saying that during the trek, she fainted two or three times, but he did not seem to care.
She claimed that Gautam Singhania is such a big devotee of Lord Venkateswara and not any of the other gods because the latter is the god of money.
Nawaz Modi, who had sought 75 per cent of the industrialist's wealth for her and her daughters as settlement, had said, "Gautam beat up, smashed up, kicked, punched his minor daughter Niharika and myself for something which felt like about 15 minutes, unrelentingly." This happened on September 9, she added.
In an open letter, IIAS said the independent directors Raymond Ltd should communicate with investors and other stakeholders, assuage their concerns and "articulate a course of action they have taken following these public allegations".
"In the interest of the company and safeguard the interests of a larger set of stakeholders, we urge you to undertake an independent investigation into the allegations of both, assault and CEO excesses," IIAS said.
Shares of the company have seen a steep decline ever since the news of their divorce came out. In the past five days, shares slumped as much as 10 per cent.