InvestorQ : What is Tata Sons’ reaction to the allegations made by the Mistry family on blocking their pledge of Tata Sons shares?
shrinidhi Rajan made post

What is Tata Sons’ reaction to the allegations made by the Mistry family on blocking their pledge of Tata Sons shares?

Answer
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1 month ago


The standoff between the Tata group and the Mistry group appears to be getting more complicated by the day. Shapoorji Pallonji Group has alleged that the Tata Group deliberately kept an urgent application to the Supreme Court on hold.

The Pallonji Group has an 18.4% stake in Tata Sons. In the aftermath of the pandemic, its realty and construction has really suffered and Pallonji needs funds urgently to handle the lag effect of the pandemic. The pledge of Tata Sons shares was an effort on those lines.

Tata Sons had moved an urgent application before the SC to restrain the Pallonji Group promoters from raising funds by pledging their shares in Tata Sons, despite the deal with Brookfield for Rs.3700 crore through. Tata Sons argued that pledge amounts to transfer.

Pallonji group has argued that the pledge only created an encumbrance on the shares and was not tantamount to transfer. The Pallonji group is desperate for funds and believes that the Tata group may have damaged its reputation by drying up its fund sources.