Time to Separate from Tata, Says Mistry Family’s SP Group
The SP Group’s announcement came after SC barred the group from pledging or selling any Tata shares till 28 October.
The Shapoorji Pallonji Group run by the Mistry family said in a statement on Tuesday, 22 September, that it was time to separate from Tata.
"The past oppressive actions, and the latest vindictive move by Tata Sons that impact the livelihood 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. Today, it is with a heavy heart that the Mistry family believes that a separation of interests would best serve all stakeholder groups," the group said.
The SP Group's announcement comes after the Supreme Court, earlier on Tuesday, barred the Mistry group from pledging or selling any Tata shares until 28 October, reported BloombergQuint.
"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 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," the group's statement said.
“Tata Sons has amplified its institutional efforts to suppress and inflict irreparable harm on the SP Group, in the midst of a global crisis triggered by the COVID pandemic.”SP Group statement
Cyrus Mistry, a scion of the wealthy Shapoorji Pallonji family, was removed as chairperson of Tata Sons in October 2016. He was the sixth chairperson of Tata Sons and had taken over in 2012 after Ratan Tata.
Mistry and Tata family patriarch Ratan Tata had reportedly fallen out over key investment decisions, including manufacturing of the world's cheapest car, the Nano.
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