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Supreme Court restrains Mistry from pledging Tata Sons’ shares

The Supreme Court on Tuesday restrained the Shapoorji Pallonji Group and Cyrus Mistry from pledging or transferring their shares in Tata Sons Pvt Ltd.

A Bench headed by Chief Justice of India SA Bobde directed the Tata Sons and the SP Group not to take any further action on the shares already pledged till the next date of hearing.

While posting the matter for final disposal on October 28, the Bench said, “In the meantime, the parties shall maintain status quo regarding transfer and pledging of shares and further action in regard to the transfer and pledging of shares already made.”

The order comes at a time when the SP Group was planning to raise Rs 11,000 crore from various funds. It had signed a deal with a marquee Canadian investor for Rs 3,750 crore in the first tranche against a portion of its 18.37% stake in Tata Sons. The SP Group shareholding in the country’s largest business house is valued at over Rs 1 lakh crore. The SP group, which owns 18.37% in Tata Sons, had said TSPL moved the top court to block its plan to pledge shares for raising funds, complaining about oppression of minority shareholder rights.