NEW DELHI: Sapphire Palonji Group (SPP Group), a company owned by Cyrus Mistry’s family, has decided to end its 40-year relationship with Tata. The company has informed the Supreme Court that it will forever be separated from Tata if the right solution is found. Ratan Tata’s Sata Group owns 19.5 per cent stake in Tata Sons. The quarrel between Ratan Tata and Cyrus Mistry is likely to affect the economy and livelihoods, and the two groups must be separated, the SDP group said. The Tata and SDP groups have been in a relationship for 40 years, based on unwavering trust, hope and friendship. But in the current context, the SUP group believes that it would be better for everyone to be separated from each other.
Cyrus Mistry was hit in the Supreme Court today. The Tata Group has opposed the move by the SDP group to raise funds by mortgaging some of its shares in Tata and urged the Supreme Court to block the move. A petition filed by Tata Sons against the shareholder was heard today in the bench of Chief Justices S A Bobade and Justices AS Bopanna and V Ramsubramanian. The court also directed both Tata Sons and SDP Group4 not to take any action on shares that have already been mortgaged until October 29. Cyrus’ family company, SPS Group, owes a large amount of debt. The company is raising funds from a variety of sources to pay for it. In that sense, it is possible Tata Sons was mortgaged. He was arraigned by the Tata Supreme Court on September 5 and was arraigned on September 5. The SDP group plans to raise Rs 11,000 crore by mortgaging shares in Tata. The company also signed a memorandum of understanding to raise Rs 3,750 crore from Brookfield Asset Management, a private equity firm in Canada. The market share of SGP Group 4 in Tata Sons will now be more than Rs 1 lakh crore. Tata, a senior lawyer who handled the case on behalf of Tata, said Tata had the right to buy the shares. But the SGP Group is holding it hostage. He told the court that if the SDP Group wanted to sell its stake in Tata, Tata was ready to buy it. Shortly after the news broke, the SDP group said it was ready to leave Tata.
