Removal of Cyrus Mistry was necessary for Tata Group’s future: Ratan Tata

Ratan Tata, who replaced Mistry, said the change in leadership at Tata Group was a well-considered but difficult decision made after careful, thoughtful deliberations.

By: Express Web Desk | New Delhi | Updated: November 1, 2016 9:40 pm
cyrus mistry, ratan tata, tata sons, tata group, mistry sacked, cyrus mistry sacked, tata news, tata mistry, mistry tata, latest news Ratan Tata said the change in leadership at Tata Group was a well-considered but difficult decision made after careful, thoughtful deliberations.

The spat between Tata Sons and Cyrus Mistry turned uglier on Tuesday as interim chairman of the group Ratan Tata said that removal of Mistry was “absolutely necessary” for the “future success” of Tata Group.

“The decision to change the leadership of Tata Sons was a well-considered and serious one for its board members. This difficult decision, made after careful and thoughtful deliberation, is one the board believes was absolutely necessary for the future success of the Tata Group,” the interim chairman wrote to employees of USD 100 billion Group.

 

The letter came shortly after Mistry ratcheted up war of words by rebutting “insinuations” of mishandling a dispute with Japan’s NTT DoCoMo, saying Ratan Tata was party to all decisions regarding the telecom venture.

Tata, 78, who retired as Tata Group Chairman nearly four years back, justified his return for “maintaining stability and continuity of leadership” and promised to give the group “a world-class leader” when a fulltime boss is appointed.

He added that will now work to maintain stability and continuity of leadership. He told the employees of Tata that “focus should be on leading rather than following”.

Earlier in the day, ousted chairman Cyrus Mistry dismissed the allegations made against him by Tata Sons regarding Docomo deals, saying it was ‘false and mischievous’ to suggest that he acted on his own or without the knowledge of Ratan Tata on the Tata-Docomo matter.

A statement issued by his office said the suggestion that Ratan Tata and trustees would not have approved of the manner in which the litigation against Docomo was conducted was contrary to what transpired.

All decisions on Tata-Docomo deal were taken with approval of Tata Sons Board and actions were consistent with every such collective decision, it added.

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

  1. A
    Anand Mohan
    Nov 1, 2016 at 5:10 pm
    SEBI must immediately raise issue of corporate governance in Tata Steel, tata motors, indian hotels, tata chemicals where Tata Sons Ltd is not majority shareholder and Cyrus is still chairman there that under what capacity Ratan is writing to employees of these companies.
    Reply
    1. H
      heena
      Nov 1, 2016 at 4:32 pm
      To lead or to save an big insution or an empire, some sacrifice, multiple tactics are necessary even in family members. Please see Mahabharat or Ramayana, or even Muslim king like Aurangzeb have pla their card close to their chest. Overall we the people concern have to support Ratan Tata to the core to save the empire.
      Reply
      1. P
        Pmg Pillai
        Nov 1, 2016 at 11:55 pm
        In cases of this nature in the interst of investments action shal have t taken andit can not be sject t any awbut ourely basedon functionng of te nit ffciently datd wednesday ovmeber 02nd 2016 Time 0520hrs ist
        Reply
        1. R
          Rajesh Toppo
          Nov 1, 2016 at 4:41 pm
          Tatas should get back to creating more wealth for its investors and put a stop to all dumb projects. Cyrus cannot be driven to exile and should fight back to protect his holdings.
          Reply
          1. S
            Sawan
            Nov 1, 2016 at 7:32 pm
            The fact that the bhakts are supporting Mistry is suious enough. Unlike any other business houses in India, The Tatas have never been ociated with any Political Party or contributed to their election campaigns.
            Reply
            1. S
              S ashok
              Nov 1, 2016 at 4:17 pm
              Tatas pretend to be holier than most companies, but let us face it, they too are not so clean and ethical in their business dealings anymore. The past goodwill is still sustaining the enterprise and they milk it completely i their salt to software multi enterprise model
              Reply
              1. S
                SN
                Nov 1, 2016 at 3:00 pm
                This w saga reflects poorly on Tata board, as they were the ones who chose Mystry and within 5 years he was unceremoniously removed. The corporate boards and management structures in India remain family and coterie driven instead of professionalism. Tatas need to set their house in order and set better benchmarks for other corporate houses in India.
                Reply
                1. T
                  Thrinethran T
                  Nov 1, 2016 at 11:53 pm
                  The use of "bhakt", which has a certain connotation for several Indian religious faiths, in a pejorative sense, is indecorous.
                  Reply
                  1. Y
                    Yogeshwar Kant
                    Nov 1, 2016 at 3:18 pm
                    This is totally family drama due to some misunderstanding. Cyrus Mistry's sister is married to NOEL TATA , Rattan TaTA's half brother. Soon this misunderstanding will be cleared and either Noel Tata or Shapur Mistry will be the chairman of TATA SONS.
                    Reply
                    1. K
                      Karthik
                      Nov 2, 2016 at 11:30 am
                      When some high profile lawyers of Ratan Tata say there is no need legally to disclose the actual/specific reason for removal of board chairman blah blah,then why create confusion in media/press and throw dirt on Cyrus? Let them fight out in courts..lt;br/gt;Having said that it is hard to believe Ratan Tata as well being a general public as to why he step down citing some artificial age limit 4 yrs back ,appoint someone and let him continue for 4yrs only to suddenly on one fine morning all is not well . what were those 'noble educated' other directors in board doin all the time for 4yrs
                      Reply
                      1. Load More Comments