Tata Sons has told the NCLT that no concessions or favours have been shown to Chennai-based businessman C Sivasankaran, as claimed by Cyrus Mistry.

“It is denied that dealings of TTSL with the Siva Group have resulted in Tata Sons or any other Tata Group companies (including TTSL) incurring losses or liabilities as a result of such dealings being in the nature of any ‘undue favours’,” Tata Sons said.

Approved price range Responding to allegations that Sivasankaran-owned Sterling was given shares in Tata Teleservices at a discounted price compared to the shares sold to Temasek, Tata Sons said the price band for the issue of the shares approved by the board of directors was ₹17-40.

“Therefore, the price at which both Sterling and Aranda (an affiliate of of Temasek) were allotted shares in TTSL, was approved by the board of directors almost six months before the shares were allotted to Temasek and Sterling.”

“The fact that one investor (Temasek) was willing to pay a higher premium as compared to another investor (Sterling) is a matter of commercial negotiations, which in turn are rooted in the nature of each investor, nature of the investment made, and also the expectations of each investor from their respective investments,” it added.

‘Temasek’s right’ Tata Sons said that Temasek received the right to nominate a director to the board of directors of TTSL and also participate in decision making regarding certain ‘Critical Matters’ and ‘Fundamental Issues’. Sterling, on the other hand, did not receive any such rights.

Tata Sons said that the Shapoorji Pallonji group entities subscribed to TTSL shares (pursuant to a renunciation of rights by Tata Sons – for which no renunciation fees or compensation was paid to Tata Sons) and acquired the same from Tata Industries Limited (a subsidiary of Tata Sons) at a price of ₹15 per share.

This was completed approximately three months before the Term Sheet with Siva was agreed by TTSL.

In 2008, Tata Sons had entered into an agreement with DoCoMo to sell 6 per cent of TTSL at ₹116.09 per share.

“It is indeed unfortunate that the petitioners have sought to highlight the ‘advantage’ taken by Sterling in selling shares to DoCoMo and the ‘amassing [of] a huge profit…in less than three years’ by Sterling, without mentioning the fact that the same ‘advantage’ was also taken by persons and entities closely related to the Petitioners,” Tata Sons said.

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