Cyrus Mistry hits back, says Tata Sons knew about Welspun deal

The only board member to reply was Vijay Singh, a nominee director of Tata Trusts on the Tata Sons board, and he expressed positive appreciation.

By: ENS Economic Bureau | Mumbai | Updated: November 1, 2016 6:40 pm
Cyrus Mistry, tata, ratan tata, Tata sons, Tata Group, Cyrus Mistry sacked, Cyrus Mistry email, Ratan tata Cyrus Mistry, Cyrus Mistry mail to tata group, Ratan tata, Cyrus Mistry TATA, Cyrus Mistry lame duck chairman, Ratan tata, tata interim chairman, tata, tata group, business news, companies, India news, Indian express news File photo of Ratan Tata with Cyrus Mistry. PTI Photo

Cyrus Mistry, who was removed as chairman of Tata Sons earlier this week, on Friday said the Tata Sons board including the nominee directors of the Tata Trusts were adequately informed about the decision of Tata Power to buy Welspun Renewables Energy for Rs 10,000 crore. In a statement issued late on Friday evening, Cyrus Mistry’s office said: “It is surprising that Mr Tata has sought to justify Monday’s conduct by making vague public statements that are contrary to his knowledge and contrary to the records of the Tata Group.”

WATCH VIDEO: Cyrus Mistry Rubbishes Tatas Allegations: Find Out What He Said

“Tata sources said that the trustees of Tata Trusts were not kept informed about the transaction. The facts are as follows: In the early part of this year, Tata Power made a presentation to Tata Sons that a significant focus area would be the renewables sector,” he said.

“The Tata Sons Board appreciated it. On May 31, 2016, a note was circulated to the board of Tata Sons and to Ratan Tata (he was sent all board notes as chairman emeritus) providing information about the proposed Welspun transaction, and asking them if they needed any further information,” he said.

The only board member to reply was Vijay Singh, a nominee director of Tata Trusts on the Tata Sons board, and he expressed positive appreciation. “With no other view having been expressed, Tata Power executed the agreement on June 12, 2016,” Mistry said.

Thereafter, a series of discussions took place in the presence of Ratan Tata, in his capacity as chairman emeritus and trustee NA Soonawala, trustee of some Tata Trusts. “These included much more detailed interaction with the merchant bankers to the transaction. Soonawala had strong views on how this listed operating company must structure its transaction and proceeded to have further meetings with the merchant banker,” the statement said.

Since funding for the transaction required shareholder approval, the transaction was discussed again at the Tata Sons board. “On June 30, 2016, Anil Sardana, CEO of Tata Power made a detailed presentation to the Tata Sons board. The discussion covered all aspects of the transaction including the structure and the Tata Sons board unanimously approved the transaction,” it said.

The minutes record that Nitin Nohria and Vijay Singh “after discussing the proposal with Tata and Soonawala”, while reiterating their view that the proposal should have come to the trustees earlier, approved the transaction, the statement said.

For all the latest India News, download Indian Express App now

First Published on: October 29, 2016 3:12 am
  1. R
    RBI
    Oct 29, 2016 at 6:38 am
    How s it possible that an enterprise that has fingers n so many pies, is hiding behnd trusts, why. It is not healthy, what have yoy to hide? You are also deeply involved where cprruption is rife, the conclusions are obvious to the lay person. Cyrus is a hero, dong basic housekeepng, why force out the 19% owner, at least we inow who he is and what he has, seems that others have more to hide. Ratan s no sage, made spectacularly poor financial decisons, Nano, Tata hotels overseas and the crwn, Corus in the UK.
    Reply
    1. D
      Deepak Vohra
      Oct 29, 2016 at 10:13 pm
      sab chor hai. sab gadar hai.lt;br/gt;"ek duje da haq mar ke bande lok amir, lt;br/gt;mian inu kehda chori duniya kande taqdeer"
      Reply
      1. B
        Bhuvi
        Oct 29, 2016 at 8:40 am
        Tata Group is a great group. However, having been part of it in managerial capacity I felt it was a cozy group on top.... not as much as ITC. They aren't very efficient with money. Cyrus Mistry may have tried to bring prudence very fast which led to his ouster,which is sad. Raymond Rickson (IHCL) was a mess. Mistry's concerns on IHCL are right n Mr. Tata is wrong. However, Mr. Tata is right on Nano. So, it's a mixed bag. All parties should have shown maturity as they expect it from people down the line.... especially down the line. I left them as I could not align their style with mine.
        Reply
        1. T
          Tauro
          Oct 29, 2016 at 3:01 am
          Tatas is a distinguished name and these two men are distinguished persons. It is time that they should stop washing the dirty linen in public and get to business as usual.
          Reply