Cyrus Mistry expresses shock over removal, says he was reduced to ‘Lame Duck Chairman’

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. "

By: Express Web Desk | New Delhi | Published:October 26, 2016 5:16 pm
cyrus mistry, Mistry, Cyrus mistry sacked, Tata, Tata group, Ratan tata, Cyrus mistry ouster, cyrus pallonji mistry, cyrus mistry sacked, Tata group, India business, Ratan Tata, tata and sons, cyrus mistry, tata, tata news, ratan tata interim chairman, business news, indian express news Cyrus Mistry was removed as the Chairman of Tata Sons, nearly four years after he took over the reins of the group. (PTI Photo)

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.

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  1. N
    Nishist
    Oct 26, 2016 at 12:00 pm
    Appoint a brahin douche recommended by indo-aryan brahmin syndicate that appoints brahmins as CEOs of all private sectors and public sectors by giving no-tax raid concessions.
    Reply
    1. N
      Nishist
      Oct 26, 2016 at 3:55 pm
      Why do you brahmin dogs introduce yourselves as Psychos. We all know that.
      Reply
      1. Y
        yna
        Oct 26, 2016 at 12:58 pm
        tata is highly unethical and a worst consumer service co; moreover it appears the interim chair doesn't want his "wasteful" legacy be resolved so as to benefit the shareholders; like mistry's comment on board resolution, why wouldn't they provide opportunity to explain the stand before any such decision; this is an cowardice act to protect the sheepish legacy of the interim chair
        Reply
        1. D
          Deeply Concerned
          Oct 26, 2016 at 12:04 pm
          So after being a Lame Duck, why file court case to continue as chairman??? Will courts allow lame ducks ???
          Reply
          1. H
            harun
            Oct 26, 2016 at 12:03 pm
            Ratan Tata has fashioned the Coup to staop Mistry from doing away with White Elephants which Ratan burdened the Tata Group with.lt;br/gt;lt;br/gt;Nano and Corus are two such ventures which have seen the debt rise and Put enormous strain on the finances.lt;br/gt;lt;br/gt;Cyrus Mistry just did not deserve this shabby treatment and the way he was thrown out is nothing short of what we see in Political parties.
            Reply
            1. V
              Vinod
              Oct 26, 2016 at 12:11 pm
              He is correct .. mr Ratan being a good boy had taken too much of emotional quotient to his auro .. I am with Mr Cyrus .lt;br/gt;How can Ratan who has retired can be taken on board ? this shows he left over a board that had no mettle to appoint someone . Better is Mr Ratan tata can move away . lt;br/gt;Have great respect for his integrity and humility but this is a different ball game .
              Reply
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