ADVERTISEMENT

Tata Sons Statement Reflects Desperation, Cyrus Mistry’s Scathing Reply

Cyrus Mistry’s office says Tata Sons’statement full is full of half truths. 

Ratan Tata, interim chairman of Tata Sons, left, with Cyrus Mistry, outgoing chairman. (Source: PTI)
Ratan Tata, interim chairman of Tata Sons, left, with Cyrus Mistry, outgoing chairman. (Source: PTI)

Hours after Tata Sons issued a 9-page letter justifying its decision to sack Cyrus Mistry from his position as chairman, Mistry’s office released a statement saying that the letter was full of “selective data, unsubstantiated claims and half truths”.

Here is a full reproduction of the statement released by Cyrus Mistry’s office to the media:

After 17 days of silence on the unjustified and unexplained removal of Cyrus P Mistry as Chairman of Tata Sons, the Tata Sons nine-page “press release” has not much but selective data, unsubstantiated claims and half truths without a word of explanation as to why it became necessary to remove him summarily violating natural justice and without explanation.

  • To remove TCS from the data contending that “Mr Mistry does not really contribute materially to TCS” 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.
  • To say “in addition, there were some significant issues of conflict of interest in relation to the Shapoorji Pallonji Group” with nothing to show for it is a smear campaign unworthy of either the Tata Group or a response, particularly when it known that Mr Mistry had instructed all Tata companies not to enter into new contracts with that Group.
  • To allege “ulterior motive” of taking over control of companies, giving the example 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 governance standards.

The Nomination and Remuneration Committee of Tata Sons lauded Mr Mistry’s performance on June 28. The NRC’s report was adopted by the complete board the following day. Tata Sons is yet to state what necessitated the replacement of Mr Mistry on October 24 without any notice or an opportunity to defend himself.

The Tata Sons statement reflects desperation. The statement admits receiving “emails and calls from many across the globe since the Board decided to change the Chairman.” All the “reasons” in the letter, would have, and should have, been tabled and recorded in the minutes of the many Tata Sons board meetings held over four years of Mr Mistry’s Chairmanship. Unfortunately for them, no such record exists because these allegations are simply not true. The “reason” were not tabled even on October 24. That after 17 days, this is the best that can get said is heart-warming.

Tata Sons Statement Reflects Desperation, Cyrus Mistry’s Scathing Reply