Tata Sons in an emailed statement to the media said that Cyrus Mistry has made ‘unsubstantiated claims and malicious allegations, casting aspersions on the Tata group, the Tata Sons board and several Tata companies and some respected individuals. These will be responded to in an appropriate manner’.
Tata Sons is responding to a letter written by Cyrus Mistry to the board members of Tata Sons and trustees of the Tata Trusts.
Mistry had alleged in his letter that he was pushed into being a ‘lame duck’ chairman. Tata Son's Article of Association was modified to diminish his executive powers, he had added.
Tata Sons has pointed out that Mistry’s allegations only came after this removal from the position of chairman of Tata Sons. He had been aware of the company's business decisions for more than ten years, the group added in its letter.
Tata Sons has also said that the board had repeatedly inquired about "certain business issues" and that the trustees were losing faith in Mistry.
Cyrus Mistry in his letter had said that the decision to remove him was sudden and lacked explanation.
Tata Sons has also refuted all allegations made by Mistry in his letter calling them "unwarranted". The group has alleged that Mistry put out selective information in the public domain to defend his point of view.
Mistry's letter had shed light on various issues with Tata companies such as fraudulent transactions in the Air Asia India deal, reluctance to scale back the Nano despite losses and the company's flawed international strategy for Indian Hotels.
The Tata Sons statement also said that Ratan Tata has stressed the senior leadership of Tata Group companies to reduce debt and increase shareholder returns.
Here is a full reproduction of the Tata Sons’ statement.
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