Two days after being sacked as the Chairman of Tata Sons, Cyrus Mistry in a letter to Tata directors said he was shocked by the decision as he could not believe he was removed on grounds of non-performance.
In the letter, which was accessed by CNBC TV-18, Mistry made some serious revelation of the functioning of Tata Sons and said his removal “without explanation is unique in the annals of corporate history. ”
“Lack of explanation has led to all manners of speculation and harmed mine as well as Tata Group’s reputation,” wrote Mistry in the five-page letter.
Mistry mentioned that the forensic probe had revealed fraudulent transactions worth Rs 22 crore in AirAsia. “I had made my objection known on the airline venture (AirAsia).” he wrote adding “I was pushed into the position of a ‘Lame Duck’ Chairman.”
He also disclosed that Tata’s nano project was a burden on company and only emotional reasons have kept it from closing the project. He said that Nano has consistently lost money. “Any turnaround plan for Tata Nano required Tata Motors to shut it down,” reads the letter.
He also advised Tata against the aggressive bid for Mundra project as it carries the risk of considerable impairment.
Highlighting his achievement during his tenure as Tata chairman, Mistry wrote that during his term the net worth of Tata Companies rose to Rs 42,000 crore from Rs 26,000 crore. He also added that the operating cash flow of the Group, during his term, had grown at 31 per cent CAGR.
Earlier on Tuesday, the Tata Sons filed caveats in Supreme Court, Bombay High Court and National Company Law Tribunal to prevent ousted Tata Sons Chairman Cyrus Mistry from getting an ex parte order against his sacking. This comes a day after a board announcement said that Mistry would be immediately replaced by Ratan Tata, for an interim period of four months.