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Cyrus Mistry making ‘rehashed’ version of earlier statements: Tata Sons

Tata Sons said that it is a free enterprise and the Tata Trusts have been running it like that for over 100 years.

By: ENS Economic Bureau | Mumbai | Published: December 6, 2016 4:49:49 am
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Tata Sons on Monday categorically refuted the allegations made by Cyrus Mistry, former chairman of Tata Sons, in his letter to the shareholders of some Tata Group firms. Tata Sons said Mistry’s letter is “a rehashed version from his earlier statements, press reports and leakages” which the holding company has ‘forcefully rebutted”.

Tata Sons said that it is a free enterprise and the Tata Trusts have been running it like that for over 100 years. “It can be seen straightaway that what the Trusts have been doing so far is for the people at large and not for any individual or a family. What has come from the people, goes back to people several times over,” said the official spokesperson of Tata Trusts in a statement.

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On allegations of mis-governance, Tata Sons said: “Indeed, the Tata Group is no one’s “personal fiefdom”. After he became the chairman of Tata Sons, it is Mistry who converted the Group into his “personal fiefdom”, with his unilateral actions destroying precious institutional memory of the House of Tata.”

Tata Trusts said the trusts are governed by the individual wills of Jamsetji Tata, his two sons, Sir Dorabji Tata and Sir Ratan Tata, and other founders. “The Trusts have been scrupulously following the mandates set out in the wills. That is the reason the different Trusts continue in existence for decades,” said the statement.

“Mistry has gradually over the past three/four years concentrated all power and authority only in his own hands as chairman in all the major Tata operating companies where there is no longer any representatives from the board of Tata Sons, the main promoter and largest shareholding group, as has always been the case in the past,” the statement added.

Tata Sons also said Mistry’s statements have caused the group (including the companies where he continues to be the chairman) “enormous damage and caused considerable financial loss to all shareholders, running into tens of thousands of crores”.

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