New Delhi: The Shapoorji Pallonji (SP) group sever its 70 year old relationship with Tata Sons due to ongoing battle between the two groups. SP group said on Tuesday that the time had come to separate from Tataa and end the 70-year-old relationship. The c’s need to sell its stake to raise capital as the Sterling and Wilson Solar Limited has default on debt.
SP Group holds 18.37 per cent stake in Tata Sons and is the largest minority shareholder in it. The separation may change the dynamics of Tata groups as reported by Institutional Investor Advisory Services (IIAS) report.
The Shapoorji Pallonji Group said, “It has stated before the Supreme Court that it has become necessary to secede from the Tata group in view of the continuing legal dispute that is likely to affect livelihood and economy.”
According to the statement, it is necessary to arrive at a quick resolution which is fair and equitable.The legal battle between the SP Group and Tata has continued since Cyrus Mistry was sacked from Tata Sons in October 2016.
The SP group claimed in the midst of the global crisis caused by the COVID-19 pandemic, 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.
The SP group said that given the current situation and the retaliatory action taken by Tata Sons, it is no longer viable for the two groups to stay together. When contacted, a Tata Sons spokesperson declined to comment.