Shapoorji Pallonji Group said on Tuesday that the time had come to break away from Tata Sons and end the 70-year-old relationship. SP Group holds an 18.37 percent stake in Tata Sons and is the largest minority shareholder in it.
Tata Sons is the holding company of the entire Tata group. The Shapoorji Pallonji Group said in a press release, “Considering the continuing legal dispute over livelihood and the economy, it has become necessary to break away from the Tata group.” According to the statement, it is important that an early resolution is reached on the basis of fair and fairness in the matter in which the value of the entire property is reflected.
The legal battle between the SP Group and Tata has continued since Cyrus Mistry was sacked from Tata Sons in October 2016. According to the statement, in the midst of the global crisis caused by the COVID epidemic, Tata Sons has made all efforts to harm the SP group. The Mistry family was engaged in raising funds against their personal property. This step was taken for the livelihood of 60,000 employees and more than 100,000 migrant workers.
According to the statement, disrupting Tata Sons’ fundraising move reveals its revengeful mood. The SP group said that the two groups would stay together in view of the current situation and the retaliatory action of Tata Sons. Is no longer practical. In 2012, when Cyrus Mistry, the heir of the Mistry Group, became the chairman of Tata Sons, there was a sense of pride and duty attached to it, the statement said. During that time, the Tata group was undergoing significant changes.
Unfortunately, when he was removed as chairman in October 2016, he was trying to improve operations. The statement said that the current leadership of Tata is not only taking business decisions that destroy values but is also trying to confuse. There have been many such cases in the past, due to which the Tata group still has to face trouble. When contacted a Tata Sons spokesperson declined to comment.
It is noteworthy that in the much-publicized case of Tata Sons v. Cyrus Mistry, the Supreme Court barred Mistry’s firms and Shapoorji Pallonji Group from raising capital, pledging, or taking any further action in respect of the shares of their stake in Tata Sons is. Along with this, the top court has ordered to maintain the status quo till 28 October. The supreme court will hear the final hearing in the case on October 28.