MUMBAI: Among the issues on which the Tata Group could challenge the NCLAT ruling reinstating Cyrus Mistry as executive chairman of Tata Sons is the original amount invested by Shapoorji Pallonji Group in the country’s largest conglomerate.
The ruling said the companies controlled by the SP Group have, so far, invested about Rs 1,00,000 crore. People in the know told ET that the actual amount invested by the group was about Rs 69.64 crore in 1965.
NCLAT said “the order of waiver was allowed in favour of the appellants (Sterling Investment) having noticed that out of Rs 6,00,000 crores of total investment in the company (Tata Sons), Shapoorji Pallonji Group had invested approximately Rs 1,00,000 crores”.
However, one of the persons cited earlier said, “But, SP Group became a shareholder of Tata Sons in the year 1965 and the value of those shares have gone up to Rs 58,441crore in March 2016. For the years from 1991to 2016, Mistrys have taken home dividends worth Rs 872 crore. Hence, the claim that they have invested Rs 1, 00,000 crore in Tata Sons is completely misleading.”
Source: Economic Times