Cyrus Mistry’s sudden demise puts the spotlight on SP group’s involvement in Tata Sons

New Delhi, Sep 4 : Cyrus Mistrys tragic death in an accident in a car on Sunday has brought the spotlight back on Shapoorji Pallonjis pallonjis 18.4 percent stake in Tata Sons the holding company of the Tata group.

The SP group has discussed dissociation in the past due to an uneasy relation with Ratan TataThere were reports in the media in March of this year that SP group was taking out a loan of Rs 15,000 crore against the ownership in Tata Sons.

SP Group had talked about separation two years ago in September of 2020 in front of the Supreme Court.The biggest shareholder in the Tata Group, SP Group has told the Supreme Court Tuesday that a separation from the Tatas is required.

The SP Group stated before the Supreme Court that a separation from the Tata Group is necessary due to the potential effect this ongoing case could have on peoples livelihoods as well as the economics.They said it was essential that a quick solution is reached in order to reach an equitable and fair resolution reflecting the worth of the tangible and intangible assets.

The situation is forcing the Mistry family to sit down and think about the past, present and the possible future for all parties involved, SP group had said "The previous oppressive actions and the latest vengeful move from Tata Sons that impact the existence of the entire SP Group community leads to the unfathomable conclusion that co-existence of the two groups in Tata Sons would be infeasible.The SP-Tata relationship , which has lasted for more than 70 years, was built through trust and good faith friendship.

Today it is with an aching heart that the Mistry family believes that the separation of interests is the best for the interests of all stakeholders," the group said in an announcement.Being the biggest minority shareholder, holding an 18.37 percent stake, the role performed by the SP Group, was always one of guardianship with the aim of protecting the interests of the Tata group.The SP Group has always utilized its rights to vote as a shareholder to serve the best interests of Tata Group.Tata Group, SP group had stated.

SP Group said it is an issue of public record that prior to 2000 in the year 2000, when Tata Trusts, being Public Charitable Trusts were unable to exercise their voting rights, similar to those owned by a Public Trustee The SP Group voted to protect the best interests of the Tata Group.SP Group said In 2012 when Cyrus Mistry accepted the position of Chairman of Tata Sons, it was not just with an underlying sense of pride but also with an understanding of obligation as an insider member of the Board of Tata Sons.

Mistry who was 54 years old, was dismissed from his position as Tata chairman in 2016 after the criticism of his work.He was replaced by Ratan Tata -- the man who Mistry himself had replaced four years earlier.

The boardroom decision was covered in the mystery of the event, and it triggered an ongoing legal dispute in which Indias highest court finally declared in Tatas favor, BBC reported.