After being removed as the chairman of Tata Sons, Cyrus Mistry has levelled a series of allegations against Ratan Tata. In a confidential email to Tata Sons board members, he expressed shock on the latest development and accused them of replacing him as Chairman of India’s largest conglomerate without so much as a word of explanation.
Contending that he was pushed in to a position of “lame duck” chairman, Mistry said the manner in which he was removed must be unique in the annals of corporate history.
“I was shocked beyond words at the happenings at the board meeting of October 24, 2016. Apart from the invalidity and illegality of the business that was conducted, I have to say that the Board of Directors has not covered itself with glory.
“To ‘replace’ your Chairman without so much as a word of explanation and without affording him an opportunity of defending himself, in a summary manner must be unique in the annals of corporate history,” he wrote in the email on October 25 which was circulated widely to the media today.
He said the suddenness of the action, and the lack of explanation has led to all manner of speculation and has done immeasurable harm to his reputation as well as that of Tata Group.
Mistry has alleged that forensic investigation revealed fraudulent transactions of Rs 22 crore involving non-existent entities in India and Singapore.
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As the bitter war played out between him and interim Chairman Ratan Tata, Mistry also alleged that due to the latter’s passion for aviation, Tata Sons board increased capital infusion in the aviation sector at multiple levels of the initial commitment.
Attempts to get a response from Tata Sons on Mistry’s charges failed.