New Delhi, September 22: Ending its seven-decade-old relationship with Tata Sons, the Shapoorji Pallonji Group announced on Tuesday its departure from the conglomerate. The move came amid an ongoing legal battle between the two industrial giants. In its statement, the SP Group noted that continuing their partnership would be detrimental to the livelihoods of several workers. SC Restrains Shapoorji Group, Mistry from Pledging or Transferring Tata Sons Shares.

The statement was issued hours after the SP Group faced a legal setback, with the Supreme Court ordering it to maintain status quo regarding the sale or transfer of its shares. The decision was based on the petition of Tata Sons which challenged SP's decision to raise capital against its shares in the conglomerate.

"Today, Shapoorji Pallonji Group stated before the Supreme Court that separation from Tata Group is necessary due to potential impact this continuing litigation could have on livelihoods and the economy," the company said.

The SP Group holds 18 percent shares in the country's largest business house. The stakes value at around Rs 1 lakh crore. The company, reeling under financial setbacks, had attempted to raise capital against its shares from Axis Trustee Services and IDBI Trusteeship Services.

Ties between the Mistry family-led firm and Tata Sons turned sour since 2016, when Cyrus Mistry was removed as the latter's chairman. Since then, both the sides were involved in hectic legal battles.

(The above story first appeared on LatestLY on Sep 22, 2020 08:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).