SP slaps notice on Tata Sons board, seeks damages for blocking fund raise

The Shapoorji Pallonji group, which is fighting a legal battle with Tata group, has slapped a notice for damages against the board members of Tata Sons, asking their complicity in the decision to block them from raising funds against the security of Tata Sons shares.

The notice sought an explanation from TSL board members, particularly the independent directors, whether they gave their consent to the oppressive action that caused prejudice to a minority shareholder.

The notice from the SP group was slapped after Tata Sons moved the Supreme Court early this month blocking SP group from pledging part of its 18.5 per cent stake in Tata Sons to Brookfield to raise Rs 3,750 crore in debt. The fund raising was important to the SP group which is facing a cash crunch and has defaulted on loans taken from Sterling and Wilson, a listed entity of the group.

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In a statement, a SP group spokesperson said Tata’s move was solely intended to inflict irreparable harm on the SP Group and the Tatas kept their application on hold, purportedly for curing defects, despite moving a plea for urgency before the Supreme Court.

The Mistrys said under the Companies Act, the independent directors on the Tata Sons board were duty bound to protect the interests of minority shareholders.