Updated: January 5, 2020 10:25:39 pm
Two weeks after he was reinstated as Tata Group chairman by National Company Law Appellate Tribunal, Cyrus Mistry on Sunday said he is ‘not interested’ in getting back to Tata group in any capacity. His statement comes ahead of the Supreme Court’s hearing on an urgent petition filed by Tata Sons, seeking to set aside the NCLAT order reinstalling him as the group chairman and also in the board of group companies.
In a public statement, Mistry said, “To dispel the misinformation campaign being conducted, I intend to make it clear that despite the NCLAT order in my favour, I will not be pursuing the executive chairmanship of Tata Sons or directorship of TCS, Tata Teleservices, Tata Industries. I will, however, vigorously pursue all options to protect our rights as a minority shareholder including a seat on the board.”
Explained: Key takeaways from NCLAT order
Ratan Tata, Chairman Emeritus of Tata Group, along with Tata, Tata Consultancy Services and Tata Tele Services, had moved the apex court challenging certain portions of the NCLAT judgment. In his plea to the SC, Ratan Tata said the NCLAT’s treatment of Tata Sons as a “two-group company” in its December 18 judgment was wrong in its premise as the Shapoorji Pallonji Group was always an investor and that there had “never been any relationship akin to a partnership”.
Cyrus Mistry, son of Pallonji Mistry who is the owner of Shapoorji Pallonji group and the biggest stakeholder in the Tata group, was appointed to the top position in 2012. Relations were seen as amicable between Mistry and Tata till the former was removed as chairman of Tata Sons in October 2016.
Mistry had effected several changes in the business practices due to which capital expenditure increased but returns to shareholders decreased. He replaced the trusted hands of Ratan Tata and his proposed sale of Tata Steel port plant in the UK was seen as harming the goodwill earned by Tata abroad. The extended dispute with Docomo group proved to be one of the nails in the coffin. Tata had to cough up $1.2 billion in the arbitration to the Japanese group.
(With inputs from PTI)
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