MUMBAI: Tata Power said its shareholding in two Singapore subsidiaries targeted by enforcement proceedings in a $650 million arbitration dispute with Kleros Capital Partners has already been pledged to lenders, as the Indian utility seeks to prevent any sale of the assets pending an appeal before Singapore's highest court.




To sell Tata Power's shares in its Singapore-based subsidiaries, Tata Power International and Bhira Investments, Kleros will first have to deal with the lenders, outgoing MD Praveer Sinha said, adding that the legal process itself could take three to six months.




The comments come days after Kleros said enforcement orders obtained from the Singapore International Commercial Court (SICC) had enabled court-appointed authorities to seize and sell Tata Power's shareholdings in the two entities.




The dispute relates to the Krutogorovo coal deposit in Russia's Kamchatka region. Kleros alleged that Tata Power used confidential information obtained under agreements between the parties to pursue the project independently, leading to arbitration proceedings in Singapore. The Singapore International Arbitration Centre (SIAC) ruled in 2023 that Tata Power breached non-disclosure agreements with Kleros and, in 2025, awarded the investment firm damages of $490 million, along with interest and costs.




Tata Power challenged the awards before the SICC in October 2025, but the court dismissed its applications in August this year. The SICC subsequently passed judgments in September permitting enforcement of the awards. The company has appealed before the Singapore Court of Appeal, with the matter scheduled to be heard on Jan 19, 2027.




In a disclosure accompanying its second-quarter results, Tata Power said notices were served on Tata Power International and Bhira Investments on Nov 6 informing them that the company's shareholding in the entities had been attached by court-appointed authorities.




Tata Power said it is in the process of filing objections to the enforcement proceedings. If Kleros contests those objections, the company may be required to seek release of the attached shares before the SICC. The sheriff can commence the sale or transfer process only after such an application is decided, and the decision is itself appealable. Tata Power also plans to seek deferment of any sale pending the outcome of its appeal.




Tata Power maintained that it continues to retain control over the financial and operating policies of the two subsidiaries and continues to enjoy the economic benefits arising from them.