Mistry’s Claims Unsubstantiated, Malicious: Tata Sons

Tata Sons, the holding company of Tata group entities, has on Thursday (27 October) rejected all the claims made by the ousted chairman Cyrus Mistry as unsubstantiated and malicious allegations. “These allegations have damaged the reputation of Tata group, the Tata Sons board and several Tata companies and some respected individuals and the company respond to them in an appropriate manner,” said a Thursday evening statement from Tata Sons.

Mistry, who was replaced as chairman of Tata Sons on Monday (24th Oct), had the next day claimed that he was not allowed to function freely as chairman during his four-year tenure and the group companies would need to write down at least $18 billion due to loss making projects and wrong decisions taken by the previous leadership. Mistry’s confidential email addressed to the board directors of Tata Sons was, however, leaked to the media on Tuesday itself.

"It is a matter of deep regret that a communication marked confidential to Tata Sons board members has been made public in an unseemly and undignified manner. The correspondence makes 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,”said a Tata Sons release.

Rejecting Mistry’s charge that he was reduced to a “lame duck” chairman, Tata Sons said that Mistry has been on the board of the Company since 2006 and he was appointed deputy chairman in November, 2011, and formally appointed Chairman of Tata Sons on December 28, 2012.

“He (Mistry) would be fully familiar with the culture, ethos, governance structure, financial and operational imperatives of the Tata Group as well as various group companies. As the Executive Chairman, he was fully empowered to lead the group and its companies. It is unfortunate that it is only on his removal that allegations and misrepresentation of facts are being made about business decisions that the former Chairman was party to for over a decade in different capacities. The record, as and when made public, will prove things to the contrary,” the Thursday release said.

Efforts are now being made to level accusations against individuals and company boards for ignoring corporate governance norms that were supposedly upheld by the former Chairman while in office. The Tata Sons board gives its Chairman complete autonomy to manage opportunities and challenges. However, the tenure of the former Chairman was marked by repeated departures from the culture and ethos of the group, said Tata Sons statement.

“It will be beneath the dignity of Tata Sons to engage in a public spat with regard to the several unfounded allegations appearing in his leaked confidential statement, and there is a multitude of records to show that the allegations made by Cyrus Mistry are unwarranted and these records will be duly disclosed before appropriate forums, if and when necessary,” Tata Sons said.