Tata Power is seeking to block the potential sale of its stakes in two Singapore-based subsidiaries amid an escalating legal battle with investment firm Kleros Capital Partners. The Indian energy company says it has already pledged its holdings in the entities to lenders, which could complicate enforcement efforts tied to a $650 million arbitration dispute. The company is also pursuing legal remedies in Singapore, hoping to prevent the disposal of the assets while its appeal against the arbitration ruling remains pending.
Outgoing Managing Director Praveer Sinha said Kleros would have to address the lenders’ existing claims before it could sell Tata Power’s interests in Tata Power International and Bhira Investments. He estimated that the associated legal procedures could take between three and six months.
Tata Power’s position comes after Kleros announced that it had secured enforcement orders from the Singapore International Commercial Court (SICC). According to the investment firm, these orders allow court-appointed authorities to take control of and sell Tata Power’s shareholdings in the two Singapore-based subsidiaries.
However, Tata Power argues the shares are already pledged to lenders. This could introduce additional legal and procedural hurdles before any proposed transfer or sale can proceed.
Russia’s Coal Project At The Centre
The legal confrontation stems from a disagreement involving the Krutogorovo coal deposit in Russia’s Kamchatka region.
Kleros accused Tata Power of using confidential information obtained through agreements between the two parties to independently pursue the Russian coal project. The allegations eventually resulted in arbitration proceedings in Singapore.
In 2023, the Singapore International Arbitration Centre (SIAC) found that Tata Power had violated non-disclosure agreements with Kleros. The arbitration tribunal subsequently awarded the investment firm $490 million in damages in 2025, in addition to interest and associated costs.
Tata Power contested the arbitration awards before the SICC in October 2025. However, its applications were rejected in August this year. The court followed this with judgments in September that allowed enforcement of the awards.
Tata Power Takes Fight To Singapore’s Highest Court
Despite the setbacks, Tata Power has not abandoned its legal challenge. The company has approached the Singapore Court of Appeal, seeking to overturn the earlier decisions. The appeal is scheduled for a hearing on January 19, 2027.
In a disclosure released alongside its second-quarter financial results, Tata Power revealed that notices had been delivered to Tata Power International and Bhira Investments on November 6. The notices informed the subsidiaries that court-appointed authorities had attached Tata Power’s shareholdings in both companies.
The utility said it is preparing formal objections to the enforcement action. Should Kleros challenge these objections, Tata Power could have to approach the SICC to obtain the release of the attached shares.
Importantly, the court-appointed sheriff cannot begin the sale or transfer process until the application concerning the attached shares has been decided. Any resulting decision can also be challenged through an appeal.
Company Seeks To Prevent Asset Sale During Appeal
Tata Power is additionally planning to request a postponement of any proposed sale until the Singapore Court of Appeal delivers its decision.
The company’s position is that the enforcement process should not result in the disposal of its investments while the broader legal challenge remains unresolved.
Tata Power has also stressed that the attachment of its shareholdings has not affected its operational relationship with the two subsidiaries. It maintains that it continues to exercise control over their financial and operating policies and remains entitled to the economic benefits generated by the entities.
