Mumbai, India – Tata Power has clarified that shares in two of its key Singapore-based subsidiaries, Bhira Investments Pte. Ltd. and Tata Power International Pte. Ltd., are pledged with lenders. This development significantly complicates immediate enforcement actions stemming from a Singapore High Court order related to a mounting arbitration award.
The dispute originates from a protracted legal battle with British Virgin Islands-based Kleros Capital Partners Limited, which began with a Russian coal project in 2013. With principal damages, legal costs, and accumulating daily interest, the total liability has now surpassed $650 million.
Enforcement Proceedings and Tata Power's Appeal
Following the Singapore International Commercial Court's (SICC) dismissal of Tata Power’s applications to set aside the award, enforcement proceedings were given the green light. Court-appointed authorities have since served attachment notices concerning the company's holdings in the aforementioned Singapore subsidiaries.
However, Tata Power management has indicated that any potential share-sale process managed by court authorities would be lengthy, requiring the awardee to first navigate the existing bank pledges and appoint independent valuers. The company asserts that it retains full control over the operational and financial policies of these subsidiaries and continues to enjoy their economic benefits.
Tata Power has filed an appeal before the Singapore Court of Appeal, with hearings scheduled for January 19, 2027. The company intends to seek a formal deferment of any asset sale pending the outcome of this appeal.