Due process followed in giving loans: Tata Capital

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Mumbai: Tata Capital Ltd on Friday said that it had approved Rs200 crore of secured term loans to Siva Industries and Holdings Ltd and Siva Ventures Ltd. In a statement, the firm said the loan facilities were sanctioned by the investment credit committee of its board and that due internal processes were followed.

“The facility had a security cover significantly in excess of the loans granted and was backed by a personal guarantee of C. Sivasankaran,” the statement said. According to Tata Capital, the loans were settled in June 2014 and due disclosures were made in its audited financial statements.

In a letter to the Tata Sons board, former chairman Cyrus Mistry had said loans to Sivasankaran group firms had been given based on the strong advice of a Tata Trusts trustee.