On Tuesday, the Supreme Court ordered a status quo on the transfer or pledge of Tata Sons shares by the Shapoorji Pallonji Mistry Group companies, and ruled in favor of the Tata Group. Today’s order restricts the SP Mistry Group from transferring or pledging Tata shares for the time being. The higher court said it would take the matter up for final arguments on October 28, and ordered the parties to maintain the status quo until then.
Tata Group had proposed to the Supreme Court to restrict SP Mistry Group from raising capital against its stake in Tata Sons.
The Shapoorji Pallonji group, controlled by tycoon Pallonji Mistry and his family, who owns an 18.37 percent stake in Tata Sons, plans to raise 11 billion rupees from various sources.
He had previously signed a deal with a Canadian investor for Rs 3,750 crore in the first tranche against a portion of his stake in Tata Sons.
The SP Group’s stake in the largest trading house in the country is estimated at over Rs 1 lakh crore.
Former Tata Sons chairman Cyrus Mistry, son of Pallonji Mistry, told the Supreme Court court that the Tata Group is preventing his group from “promising our actions and strangling us … wreaking havoc.” “We have 60,000 employees and a lakh of migrant workers to feed. Tata Sons does not allow our shares to be sold,” he said.
“Tomorrow, if Warren Buffett comes and tries to buy, we will have to pay 30 percent … Mistry mischief,” said Tata Sons, urging the high court to restrict the sale of his shares owned by SP Mistry Group. .
Tata Sons said he is ready to buy his shares owned by SP Mistry Group, saying: “In 4 weeks, the situation may be irreparable if Mistry does not stop.”
Cyrus Mistry was fired as chairman of Tata Sons, the Tata Group holding company, in 2016 after he fell out with group patriarch Ratan Tata over corporate governance issues at Tata companies.
Since then, he has been embroiled in a legal battle over oppression and mismanagement by minority shareholders.
In January, Cyrus Mistry said he would not seek to reclaim his board seats and his position as chief executive of the salt-to-software conglomerate after a company court in December ordered his reinstatement.
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