 "Tatas plan to sue Sivasankaran")
Tata Sons said on Wednesday it was pursuing all legal options for recovery of Rs 694 crore from Chennai-based C Sivasankaran, who invested in Tata Teleservices in 2005 but defaulted on his payment to Tata Sons to buy back DoCoMo’s shares in the company this year.
Tata Sons said in 2014, NTT DoCoMo exercised a put option to exit the firm and by the terms of the agreement with the selling shareholders, Tata Sons demanded from Sivasankaran his pro-rata share of the amount payable to DoCoMo. But, Siva refused and instead threatened to sue Tata Teleservices, Tatas and DoCoMo in a notice sent on September 15, 2016, alleging oppression and mismanagement of Tata Tele.
Tata Sons had offered Tata Tele to Sivasankaran, a close friend of Tata, at the rate of Rs 17 a share in February 24, 2006, whereas Singapore-based fund Temasek had paid Rs 26 per share to buy shares in the same firm within eight days on March 8, 2006.
This led to a gain of Rs 468 crore to the Siva group. When Docomo invested in Tata Tele in 2007 at Rs 118 per share, Siva, along with other Tata companies, sold part of his stake and made a profit of Rs 209 crore. But as part of the share agreement with DoCoMo, Siva was to buy back shares from DoCoMo at the half of DoCoMo’s acquisition price — if DoCoMo exits the company.
Though other Tata group companies and Tata Sons paid their part of DoCoMo’s claim, Siva defaulted thus leading to Tata Sons board demanding to take legal action against the Siva group in September this year. The Mistry camp has alleged that Tata Sons plan to sue Sivasankaran led to his ouster in October 24 board meeting. Tata Sons has called this allegation as “baseless”.
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