Tata Sons can continue operations as hybrid company: Top Executive

​“Tata Sons was originally set up as a private Ltd company. In 1975 by operation of law it became a ‘deemed public company’. A deemed public company is not any ordinary public Ltd company,” the executive said.

BCCL
Cyrus Investments of former Tata Sons chairman Cyrus Mistry has stated in its submissions in the Supreme Court that the Tata Group holding company never acted in accordance with restrictions imposed on a private company in collecting deposits from the public.
Mumbai: Tata Sons can continue to operate as a hybrid company — one having the characteristic of a private company based on a 2014 Supreme Court ruling on a private limited company becoming a “deemed public company” prior to 2000, a top executive said.

“Tata Sons was originally set up as a private limited company. In 1975 by operation of law it became a ‘deemed public company’. A deemed public company is not any ordinary public limited company,” the executive said.

Cyrus Investments of former Tata Sons chairman Cyrus Mistry has stated in its submissions in the Supreme Court that the Tata Group holding company never acted in accordance with restrictions imposed on a private company in collecting deposits from the public.


The June 27 submissions stated that as per the prevailing law in December 2000, a private company could not have invited or accepted public deposits. Moreover, as per the central 2002 guidelines, a private company accepting public deposit was automatically defined as a public company. “Tata Sons had accepted public deposits till September 2002. Tata Sons and its board of directors withheld this material fact” from the courts, shareholders and the Registrar of Companies, according to Cyrus Investments.

“As per law, any litigant who approaches the court is bound to produce all the documents executed by him which are relevant to the litigation. If he withholds a vital document in order to gain an advantage, then he would be guilty of playing fraud on the court as well as on the opposite party,” it said. The Tata Sons executive said none of the actions of Tata Sons in accessing funds had been in violation of the Companies Act or inconsistent with its legal character at the relevant point of time.
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