Tata Capital Financial Services said its loans to Siva Industries and Holdings and Siva Ventures Ltd had a high security cover, were backed by a personal guarantee from Chairman C Sivasankaran and settled over two years ago.
The company was responding to a claim made by Cyrus Mistry, the former chairman of Tata Sons, that a loan had turned into a non-performing asset.
Continue Reading Below
In a letter to the Tata Sons board, Mistry said that a loan was given "to Siva" despite Tata Capital's books being in need of a major clean up of bad loans to the infrastructure sector.
Tata Capital said in a statement late on Friday the loans amounted to 2 billion rupees ($29.95 million).
"The facility was settled in June 2014 and due disclosures were made in the audited financial statements of the company," the company.
($1 = 66.7879 Indian rupees)
(Reporting by Abhirup Roy; Editing by Mark Potter)