No Formal Separation Notice Received From SP Group - Tata Group
Few days back, Shapoorji Pallonji (SP) Group, the largest minority shareholder in Tata Group came up with a statement that the group is willing to exit its decades-old position in Tata Sons, following protracted acrimony. However, on Thursday Tata Sons stated that it is yet to receive a formal notice of separation from the SP Group.
In a statement, the Tata group holding company indicated the planned separation will likely be a court-monitored process. “Tata group states that they have till date not received any formal request or proposal from the SP Group on this matter. In any event, since the matter is sub judice before the Hon’ble Supreme Court, Tata Sons will wait for the court proceedings to resume, which are scheduled for October 28th," the company added.
The separation plan will offer the Tata group easy terms, including the option to stagger payments, to help India’s largest conglomerate buy out the Mistry family’s 1.5 trillion stake in Tata Sons and end the feud between the groups.
According to the statement made by SP Group, "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-Tata relationship spanning over 70 years, was forged on mutual trust, good faith, and friendship".
It also accused the Tata Sons of undertaking efforts to suppress and inflict irreparable harm on the SP Group, in the midst of a global crisis triggered by the COVID Pandemic.
If further said that since the matter is subjudice before the Supreme Court, Tata Sons will wait for the court proceedings to resume, which are scheduled for October 28.
Last month the SP Group stated before the Supreme Court that a separation from the Tata Group is necessary due to the potential impact this continuing litigation could have on livelihoods and the economy. They also stated that it was crucial that an early resolution is reached to arrive at a fair and equitable solution reflecting the value of the underlying tangible and intangible assets.