Tata Power faces a potential bill of over $650 million after a Singapore court authorized the seizure and sale of its shareholdings in two Singapore subsidiaries. The enforcement orders stem from arbitration proceedings brought by investment firm Kleros Capital Partners. The dispute dates back to 2013 and 2014, when the companies agreed to jointly explore a Russian coal deposit.
Trouble arose over who would lead the bid and the $1.1 billion project's ownership structure. Kleros did not bid, while Tata Power won the mining licence. Kleros subsequently alleged Tata Power used confidential information shared under the agreement.
In September 2023, an arbitration tribunal found Tata Power breached its contractual obligations and duties of good faith. In July 2025, the tribunal awarded Kleros $490 million in damages, with 5.33% annual interest from November 2020. The Singapore International Commercial Court dismissed Tata Power's challenges in August.
Interest and legal costs pushed the claim beyond $650 million, amounting to roughly 5% of Tata Power's market capitalization and exceeding its last financial year's consolidated net profit. Although Tata has appealed, Kleros states the appeal does not stay enforcement, and the awards remain immediately enforceable. Tata Power's shares have fallen 16% in the past six months.
Investors question how the company will manage the liability and its balance sheet implications. The company was contacted for comment but has not responded.
Source: Financial Times Companies · Summarized by HeadlinesBriefing