Responding to the allegations made by former Tata Sons Chairman Cyrus Mistry, Tata Capital on Friday said that a facility of Secured Term Loans to the tune of Rs 200 crore extended to Siva Industries and Holdings Ltd (SIHL) and Siva Ventures Ltd (SVL) were settled in June 2014.
“The Facility was sanctioned by the Investment Credit Committee of the Board. Due internal processes as applicable for sanctions of loans of such nature and value were followed,” Tata Finance said in a statement.
“The Facility had a security cover significantly in excess of the loans granted and was backed by a personal guarantee of C Sivasankaran. The Facility was settled in June 2014 and due disclosures were made in the audited financial statements of the company,” the statement added.
Mt Mistry in his letter to the Tata Sons board among other things had alleged that a Rs 200 crore loan was advanced by Tata Capital Financial Services Ltd to Mr C Sivasankaran of Siva group at the ‘strong advice of an Executive Trustee’ and it had turned into Non Performing Asset (NPA).
Mr Sivasankaran had said that the money was lent to him against a pledge created on shares held by him in Tata Teleservices Ltd. He said he had pledged shares worth Rs 600 crore to take the loan. The loan could not be repaid by him, he said.
“They (Tata Capital) have written it (loan) off in their books of accounts and kept the shares with them,” he had said.
