NEW DELHI: The Shapoorji Pallonji Group’s (SP Group) Rs 1.75 lakh crore stake in Tata Group was once again contested in the Supreme Court on Wednesday. This time, the Tata’s digged the claims made by the Mistrys with regards to the wide mismanagement in the company.
Senior counsel Harish Salve, representing the Tata Group, on Wednesday said, “In the cross-appeal they have filed, they have claimed valuation of Rs 1.5 lakh crore. They have now asked that they be given 18 per cent in all downstream Tata companies and as per their latest application the valuation is Rs 1.75 lakh crore.”
According to Bar and Bench, Salve told the top court’s Bench headed by Justice SA Bobde that the valuation of SPG’s holding rose from Rs 69 crore in 1965 to Rs 58,000 crore in 2016. “...Yet, they say Ratan Tata ran the company so badly, that it was forced to wind it up in 2016...Things are going well, the company is making money and he is making allegations of mismanagement.”
The Tata firms told the top court that unless the losses were so enormous and there was a lack of probity which left no other option but to remove the majority shareholders of the company, the NCLAT could not have reached the conclusion including that of restoring Cyrus Mistry as the executive chairman. The case will be heard again on Thursday.
Earlier on Tueaday, the Tata group had told the court that the valuation of SP Group’s stake in Tata is between Rs 70,000 crore and Rs 80,000 crore, which is almost Rs1lakh crore less than what Mistrys’ are seeking. The two groups have been involved in legal tussle ever since Mistry was removed as Tata Sons chairman in October 2016.
After years of heated exchange, SP Group on October 29 submitted a plan of separation to the Supreme Court, seeking to end its long association with the Tata Group. The bench is hearing cross appeals filed by Tata Sons and Cyrus Investments against appellate tribunal NCLAT’’s order (Dec 2019) which had restored Cyrus Mistry as executive chairman of Tata Group.