Tata Sons cannot raise funds overseas, only a public company can do that: Cyrus Ministry tells NCLT
Tata Group says there has never been any requirement for getting Tata Sons listed to generate any income for Tata Trusts
Cyrus Mistry has once again approached the National Company and Law Tribunal, NCLT, against Tata Group. This time Mistry in an affidavit has told the tribunal that only a public company can raise funds overseas. Mistry has submitted new filing in the court after it came to light that Tata Group was considering to raise funds in London for philanthropic purposes, according to a report in Economic Times. The $103 billion tea-to-salt conglomerate wants to raise money for Tata Trusts' charitable causes and for capital needs of the company, the report added.
Cyrus Mistry was ousted as Tata Sons chairman in October last year over differences with management by the Tata Group and was replaced by Ratan Tata as interim chairman. Tata Sons is not a listed company. In September, the group indicated it wants to convert itself into a private company, which Mistry had opposed. Tata Sons also filed an affidavit in the NCLT and said "discussions between a shareholder and the management cannot affect a company’s legal status".
Mistry has also produced before NCLT a letter written by Ratan Tata on 9 October, 2014 saying, "Tata Trusts was looking at ways to create liquidity for achieving its philanthropic objectives, and also for raising resources to underpin the financing of Tata Group companies," according to the ET report. Tata Trusts affidavit says, “There has never been any requirement for getting Tata Sons listed to generate any income for the Tata Trusts as they have been able to carry on philanthropic work for almost 100 years.”