Hear us first if Tata Sons files any plea: RBI caveat in HC

Reserve Bank of India (RBI) has taken a proactive stance against a potential legal battle with Tata Sons, filing a caveat in the Bombay High Court after rejecting Tata Sons' application for deregistration as a core investment company. This status would have shielded the company from stock market listing requirements. RBI has instructed that they should be heard before any order is passed and has informed Tata Sons of the caveat's presence.

The caveat, along with RBI's letter of September 11 informing Tata Sons of its inability to accept the request for voluntary surrender of its registration certificate and the need to comply with upper-layer NBFC rules, will be discussed at Tata Sons' board meeting on Thursday. Tata Trusts, being the principal shareholder of Tata Sons, is inclined to seek clarification from RBI regarding the rejection of the application instead of immediately challenging the decision.

The chairman of Tata Sons, Noel Tata, is anticipated to convey this to the board. Legal experts have noted that courts typically do not issue interim orders in regulatory matters without giving the regulator's side an opportunity to present their case.