Tata Sons’ ‘press release’ has unsubstantiated claims, half-truths: Cyrus Mistry’s office

Cyrus Mistry's office said the 'press release' has unsubstantiated claims, half truths without a word of explanation as to why it became necessary.

By: Express Web Desk | New Delhi | Updated: November 10, 2016 6:16:40 pm
Tata Sons, Cyrus mistry, tata, Tata group, Ratan tata, Cyrus Mistry Ratan Tata, Tata group of companies, Cyrus mistry sacking Cyrus Mistry refused but had to go as six out of the eight directors voted for his removal, triggering an acrimonious battle in the 3-billion group.

Ousted Tata Sons chairman Cyrus Mistry on Thursday countered Tata Sons’ statement blaming him for systematically excluding other representatives from the board and allegedly desiring to seek control of the main operating firms of Tata Group. In the statement, Mistry’s office wrote: “Tata Sons statement reflects desperation, admits receiving “emails and calls from many across the globe, since Board decided to change Chairman. To allege “ulterior motive” of taking over control of companies, giving ex. of Indian Hotels only because independent directors, one of whom is also a director of Tata Trust, demonstrated true independence is not in keeping with Tata’s gov standards.”

Calling Tata Sons’ statement as ‘unsubstantiated’, Mistry’s office said the ‘press release’ has unsubstantiated claims, half truths without a word of explanation as to why it became necessary. “Tata Sons is yet to state what necessitated replacement of Mistry on Oct 24 without notice or an opportunity to defend himself,” said the statement.

Sources  said removing TCS from data in assessing Mistry’s performance stating he does not really contribute materially to the company and to blame him for all problems inherited by him such as Tata Motor’s passenger vehicle business in India is “inherently fallacious to any unbiased observer”.

Tata Sons released a nine-page statement blaming Mistry for systematically excluding other representatives from the board. In the last four years, it said, Mistry planned and executed his strategy to become the sole representative of the group. “Under Mistry, Group’s over 100-yr-old structure consciously dismantled, firms drifting away from promoters, shareholders,” Tata Sons said.

“In hindsight, the trust reposed by Tata Sons in Mr Mistry by appointing him as the Chairman four years ago has been betrayed by his desire to seek to control main operating companies of the Tata group to the exclusion of Tata Sons and other Tata representatives,” the statement read.

Tata Sons also accused Mistry of trying to gain control of the Indian Hotels Co Ltd by using independent directors. Tata Sons holds just 28.01 per cent stake in IHCL, which last week stated that independent directors have backed the Chairman Mistry and his leadership.

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