Tata Power Says Singapore Subsidiary Stakes Are Pledged to Lenders Amid $650 Million Kleros Dispute
Tata Power has said that its shareholdings in two Singapore-based subsidiaries targeted by court enforcement proceedings are already pledged to lenders, adding another layer of complexity to its ongoing legal dispute with investment firm Kleros Capital Partners.
The development follows Singapore court orders allowing the attachment and sale of Tata Power’s shares in the subsidiaries to recover an arbitration award exceeding $650 million.
Speaking on November 11, 2026, Tata Power Managing Director Praveer Sinha said that any attempt to sell the shares would first require dealing with the lenders. He estimated that the process could take between three and six months.
The company is also pursuing an appeal before Singapore’s Court of Appeal, with the hearing scheduled for January 19, 2027.
Which Tata Power Subsidiaries Are Involved?
The enforcement proceedings concern Tata Power’s holdings in two wholly owned Singapore subsidiaries:
- Tata Power International Pte. Limited
- Bhira Investments Pte. Limited
According to Tata Power’s regulatory disclosure, both subsidiaries received notices on November 6, 2026, informing them that the company’s shareholdings in these entities had been attached by a court-appointed sheriff.
The company said the shares are pledged to consortiums of lenders associated with the respective subsidiaries.
Praveer Sinha explained that Kleros would need to address the existing lender interests and valuation process before a potential sale could proceed.
What Is the $650 Million Kleros Dispute About?
The dispute dates back to a proposed coal mining project involving the Krutogorovo coal deposit in Russia’s Kamchatka region.
Tata Power and Kleros had entered into non-disclosure agreements in 2013 and 2014 to explore the opportunity together.
Kleros alleged that Tata Power used confidential information shared under those agreements to pursue the mining opportunity independently.
The disagreement eventually led to arbitration proceedings before the Singapore International Arbitration Centre (SIAC).
In September 2023, the arbitration tribunal found that Tata Power had breached its non-disclosure agreements. In July 2025, the tribunal awarded Kleros approximately $490.32 million in damages, along with interest and costs.
The total amount being pursued has since exceeded $650 million.
Singapore Court Allows Enforcement of the Arbitration Award
Tata Power challenged the arbitration awards before the Singapore International Commercial Court (SICC).
However, the court dismissed the company’s applications on August 26, 2026. Subsequent enforcement judgments allowed the attachment and sale of the company’s shares in the two Singapore subsidiaries.
Kleros has maintained that Tata Power’s appeal does not automatically suspend enforcement of the award.
The court-appointed sheriff subsequently served attachment notices on November 6.
Tata Power is preparing objections to the enforcement proceedings and intends to seek deferment of any sale while its appeal is considered.
Tata Power Says It Does Not Expect Immediate Financial Impact
The company has sought to reassure investors that the proceedings are unlikely to create an immediate operational disruption.
Praveer Sinha said Tata Power continues to exercise control over the financial and operating policies of the two subsidiaries and continues to receive their economic benefits.
He also indicated that the company does not currently expect an immediate impact and does not believe an additional provision for the potential liability is required at this stage.
However, the final financial implications will depend on the outcome of the legal proceedings and enforcement process.
Appeal Hearing Scheduled for January 19, 2027
Tata Power’s appeal is scheduled to be heard by Singapore’s Court of Appeal on January 19, 2027.
The company has raised concerns about alleged conflicts of interest involving individuals associated with the arbitration proceedings. The Singapore International Commercial Court previously rejected its challenge.
Kleros and the individuals concerned have denied the allegations reported in connection with the dispute.
The upcoming appeal will be important in determining whether Tata Power can overturn the earlier court decision. Until then, the enforcement proceedings and the existing lender interests remain significant factors in the case.
Tata Power Reports Strong Quarterly Financial Performance
The legal developments come alongside a strong financial performance by Tata Power in the July-September quarter of FY2026-27.
The company reported consolidated net profit of ₹1,652 crore, approximately one-third higher than the corresponding period last year.
Revenue increased 25% year-on-year to ₹19,886 crore, while EBITDA grew 5% to ₹4,245 crore.
Tata Power also announced that Sanjay Banga, currently its President for Renewable Energy, will become CEO-designate. He is scheduled to take over from Praveer Sinha on May 1, 2027, subject to the applicable approvals.
The combination of strong operating results and a significant international legal dispute puts Tata Power’s financial performance and legal developments under close investor scrutiny.
