Tata Power's $650 million debt battle: Why Singapore court ordered seizure, sale of shares in local firm
A Singapore court authorised the seizure and sale of shares held by the Tata Group utility in two of its Singapore-based subsidiaries to recover dues arising from a long-running arbitration dispute.
According to PTI, Kleros Capital Partners Limited (Kleros) confirmed on Friday that the Singapore International Commercial Court (SICC) granted enforcement orders, authorising the Sheriff to seize and sell the shares held by The Tata Power Company Limited (Tata Power) in its Singapore subsidiaries: Bhira Investments Pte. Ltd. and Tata Power International Pte. Ltd.
Why did the court order to take action
The Singapore International Commercial Court ordered the seizure and sale of Tata Power’s shares in two of its subsidiaries to enforce a massive arbitration award exceeding $650 million (including principal, interest, and costs) owed to firm Kleros Capital Partners Limited.
According to the Times of India, the case revolved is about a dispute over the Krutogorovo coal deposit in Russia's Kamchatka region.
Kleros and Tata Power had entered into agreements in 2013 and 2014 to explore a joint development of the deposit.
However, Kleros later alleged that Tata Power used confidential information obtained under those agreements to pursue the Krutogorovo coal deposit independently.
The latest enforcement order was issued after the SICC, on August 26, 2026, dismissed all of Tata Power's applications to set aside the arbitration awards issued in Kleros's favour.
Kleros initiated arbitration proceedings in November 2020 at the Singapore International Arbitration Centre (SIAC), one of the world's leading institutions for resolving international commercial disputes.
The case was heard by a three-member tribunal: Professor Lawrence Boo (presiding), Stuart Isaacs KC, and Amal K. Ganguli, a Senior Advocate and retired Judge of the Supreme Court of India.
On September 26, 2023, the tribunal unanimously found that Tata Power had breached the agreements and its duties of good faith and confidence.
The tribunal issued its liability award on September 26, 2023 and its damages award on July 1, 2025.
On July 1, 2025, the tribunal issued its award on damages, awarding Kleros $490.32 million plus simple interest of 5.33 per cent per annum from November 30, 2020 until payment.
"As is standard in international arbitration, the decision is final and binding, payable immediately upon release, and globally enforceable," PTI reported, citing the statement.
Tata Power has not paid any part of the sums due under the awards.
The debt currently exceeds $650 million (approx. ₹6,113 crore), comprising principal damages of $490.32 million together with simple interest at 5.33 percent per annum from November 30, 2020 - approximately $71,600 per day, together with Kleros's legal costs.
The two Singapore entities targeted by the enforcement order are as follows: Bhira Investments holds Tata Power's Indonesian coal mining interests, including a 30 percent stake in PT Kaltim Prima Coal, while Tata Power International serves as the utility's overseas investment holding vehicle, the TOI reported.
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