New Delhi: Homegrown auto major Tata Motors Ltd (TML) on 27^th August 2021 received the approval of the National Company Law Tribunal (NCLT), Mumbai Bench, to hive off its passenger vehicles business unit into a separate entity.

Earlier in March this year, the shareholders of the company at an extraordinary general meeting convened as per an order of the NCLT had voted and approved the transfer of the passenger vehicles business unit to TML Business Analytics Services Ltd as a going concern on a slump sale basis for a lump sum consideration and was transferred to NCLT for the approval.

The company will be filing the said order along with a copy of the scheme with the Registrar of Companies, Mumbai within 30 days of the date of receipt of the order, it added.

Tata Motor said that its passenger vehicles business unit has been valued at Rs 9,417 crore. Last year, Tata Motors had announced that it would turn its domestic PV business into a separate entity and seek a strategic partnership to help the unit secure its long-term viability.

The company's management has so far stated that it has not decided on a partner: Tata Motors has maintained that as part of an overall business reorganization plan and to provide for the optimum running, growth, and development of the PV undertaking and its interests, it was necessary to realign the PV business.