Tata Sons on Thursday (October 15) said it did not receive any formal statement or request or proposal from the Shapoorji Pallonji (SP) group regarding the pledging of shares.
“Tata Group states that they have to date not received any formal request or proposal from the SP group on this matter,” it said in a press release, adding that it will wait for the court proceedings to resume, which is scheduled for October 28.
Tata Son’s clarification came after the SP Group on 22 September issued a press statement stating their desire to separate from the Tata Group after the Supreme Court had restrained till October 28 the SP Group and Cyrus Mistry from pledging or transferring their shares in Tata Sons Pvt Ltd (TSPL).
Shapoorji Pallonji Group last month stated that it’s time to exit from Tata Sons after a relationship that spanned 70 years turned sour in the last few years.
In a statement, SP Group said, “The Shapoorji Pallonji-Tata relationship spanning over 70 years, was forged on mutual trust, good faith, and friendship. Today, Shapoorji Pallonji Group stated before the Supreme Court that separation from Tata Group is necessary due to the potential impact this continuing litigation could have on livelihoods and the economy.”
In the last few months, the SP group had said that they wanted to plege their in Tata Sons in exchange for loans in order to save the businesses from failing.
They have been severely affected due to the Covid-19 pandemic and by pledging shares and taking these loans they will be able to save thousands of jobs.
“The current situation has forced the Mistry family to sit back and reflect on the past, present and possible future for all stakeholders. The past oppressive actions, and the latest vindictive move by Tata Sons that impact the livelihoods of the wider SP Group community leads to the inexplicable conclusion that the mutual co-existence of both groups at Tata Sons would be infeasible,” the SP Group had said.
It is worth noting that the protracted legal battle between Tatas and Mistrys, which started in December 2016 after Cyrus Mistry was ousted as Chairman of Tata Sons in October 2016, has twisted the relationship between the two families beyond repair. SP Group said Tata Sons has been taking “value destructive business decisions” ever since Mistry’s sacking.
