New Delhi. When RBI implemented scale-based regulation (SBR) for big NBFCs 2 years ago, investors and the market hoped that by September 2025, the country's biggest IPO would come out in the form of Tata Sons. But, with time, many ups and downs have come up in this matter. Now the matter of Tata Sons' IPO has taken the form of a conflict of interest. The situation is such that now this matter has reached the court, where a notice has also been sent to the Reserve Bank. In this regard, the controversy over Tata Sons' IPO is increasing.

Actually, RBI is considering Tata Sons' application not to bring an IPO. In such a situation, a legal notice has been sent to RBI calling it a conflict of interest. Suresh Patilkhade has sent this legal notice to RBI, the Governor, and the Deputy Governor through Access Legal partner Mohit Reddy. The notice claims that as long as Venu Srinivasan is in RBI, he will have a conflict of interest with Tata Sons, because he is also involved in Tata Trust. Therefore, if a person from a corporate house is on the board of the regulator, then in such a situation how will the regulator make an independent and impartial decision? Venu has been appointed as a director in RBI for the years 2022 to 2026.

Several allegations made in the notice
The notice alleges that RBI is allegedly committing irregularities in the case of Tata Sons IPO. For example, Tata Sons has sought cancellation of its registration as a main investment company i.e. CIC, which is legally wrong. RBI recently said in RTI that it is considering the application of Tata Sons to cancel CIC. The legal notice states that such an application should not be considered to protect the interests of investors, borrowers, and the general public. RBI had implementedscale-basedd regulation i.e. SBR. A total of 15 companies were kept in the upper layer of this SBR. According to the rule, all of them have to be listed in the stock market before September 2025, out of which 11 companies have been listed. Four companies including Tata Sons are left.

Then every company will ask for an exemption.
The notice says that when 11 companies followed the RBI rules, then how can Tata Sons be exempted from listing? If exemption is given then it will be completely illegal. The notice alleges that Tata Sons directly or indirectly takes public money. Even though it has recently sought exemption from listing by repaying the loan, it wants to escape RBI's scrutiny by surrendering this CIC. The IPO of Tata Sons will be the biggest IPO in the country. If it sells even a percent5 percent stake, then it is estimated to raise Rs 55,000 crore.