The Hindu Business Line : `No single entity called Tata Group'

The Birla-Tata dispute over Idea Cellular Ltd has taken with the Tatas informing the Department of Telecom (DoT) that there is no single entity called Tata Group and that there were 19 different companies holding stake in Tata Industries Ltd.

Responding to DoT's enquiry seeking a detailed shareholding pattern of the Tata Group, Tata Industries Ltd said, "There is no single entity called the Tata Group. There are over 80 companies which use the brand name `Tata'. We are not in possession of the information on individual investment and holding of each of these companies."

In a letter dated March 6, Tata Industries said that licence conditions did not permit any single entity to hold more than 10 per cent equity in two different companies operating in the same circle; and in the present case, the "single company" which hold shares in Idea Cellular is Tata Industries Ltd. Clarifying the shareholding pattern in the telecom company, Tata Industries (TIL) said it held 48.14 per cent stake in Idea along with its Mauritius based subsidiary Apex Investments. "TIL does not hold any shares in Idea Cellular through any other company nor does TIL itself hold these shares for and on behalf of any other person," said the TIL letter.

Tata Industries said it hold 4.07 per cent shares in Tata Teleservices Ltd which offers mobile services using the CDMA based technology. "However, this being less than 10 per cent, it is not a substantial shareholding and does not fall within the rigour of the licence norms."

The Birla Group had earlier alleged that the Tatas had violated licence norms by holding more than 10 per cent stake in two different mobile companies offering services in almost the same areas.

The Birlas had approached DoT seeking intervention in getting the Tatas to exit from Idea Cellular.

They quoted a number of documents including the shareholders agreement and DoT's old notices whereby it has been acknowledged that the Tata Group was the promoter of Idea Cellular.

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