Singapore Court Orders Seizure and Sale of Tata Power Subsidiary Shares

The Singapore International Commercial Court (SICC) has issued enforcement orders for the seizure and sale of shares held by Tata Power in two of its subsidiaries: Bhira Investments Pte Ltd and Tata Power International Pte Ltd. This decision, announced by Kleros Capital Partners Limited on Friday, follows the SICC's dismissal on August 26, 2026, of all of Tata Power’s applications to set aside arbitration awards issued in Kleros’s favour and the subsequent recognition of those awards as judgments of the Singapore court.

Kleros, an investment firm, stated that while Tata Power has appealed the SICC's decision, the appeal does not operate as a stay of enforcement, meaning the awards remain final, binding, and immediately enforceable. Tata Power has not sought a stay of enforcement so far. The Singapore court's order comes amid a long-drawn-out dispute between the two companies over a coal mining project in Russia dating back to 2013, which involved two non-disclosure agreements signed by Kleros and Tata Power to jointly explore developing the Krutogorovo coal deposit in the Kamchatka region of eastern Russia.

Kleros alleged that Tata Power misused confidential information to pursue the project for itself, ultimately securing the mining opportunity in December 2017 but deciding to abandon it in November 2020. Kleros initiated arbitration in November 2020 at the Singapore International Arbitration Centre (SIAC). On September 26, 2023, a three-member tribunal found that Tata Power had breached the agreements. Two years later, on July 1, 2025, the majority of the arbitration tribunal awarded Kleros $490.32 million in damages, plus simple interest of 5.33% per annum from November 30, 2020, until the final payment is made. This decision was final, binding, payable immediately, and globally enforceable.

As of Friday, the total debt now exceeds $650 million, comprising the principal damages and approximately $71,600 per day in interest, along with Kleros’s legal costs. Meanwhile, Tata Power filed a First Information Report (FIR) on November 2 this year at Mumbai’s MRA Marg police station, naming eight accused, including two directors of Kleros, an arbitrator, an expert witness, a litigation funder, and two former Tata Power employees. The company alleged that the two former employees forwarded confidential emails and documents to personal accounts and passed on draft legal submissions, witness statements, lawyers’ questionnaires, and an independent project assessment to Kleros. It also alleged that the expert witness in the case and the arbitrator had prior connections with Kleros representatives who manipulated the arbitration proceedings. However, the FIR does not affect the Singapore court's decision.

What to watch: Further legal proceedings and the impact on Tata Power's international assets.

Editor's note: The draft is thorough, well-structured, and correctly incorporates all financial figures, procedural history, and the recent FIR development.