1. Cyrus Mistry as Tata Sons chief had ordered no new contracts be awarded to Shapoorji Pallonji

Cyrus Mistry as Tata Sons chief had ordered no new contracts be awarded to Shapoorji Pallonji

Shapoorji Pallonji Group on Thursday said that Cyrus Mistry as chairman Tata Sons, in November 2013, had issued a directive that no new engineering and construction contracts be awarded to the SP group during his tenure.

By: | Mumbai | Published: August 18, 2017 4:28 AM
Cyrus Mistry, Cyrus Mistry news, Cyrus Mistry latest news, Cyrus Mistry tata sons row, tata sons, ratan tata, Cyrus Mistry ratan tata row, Shapoorji Pallonji Cyrus Mistry was ousted from the post of chairman of Tata Sons on October 24, 2016. (Reuters)

Shapoorji Pallonji (SP) Group on Thursday said that Cyrus Mistry as chairman Tata Sons, in November 2013, had issued a directive that no new engineering and construction contracts be awarded to the SP group during his tenure. In a statement, SP Group said, “The orders from Tata Group fell from Rs 1,125 crore in 2012-13 to zero in 2015-16, when Mistry was the chairman of Tata Sons. Any residual orders pending is extremely insignificant in value for the SP Group.”

The response came in as a rebuttal to a media report published on Thursday, which stated that the Tata Group has decided not to have any business dealings with SP Group.

According to the media report, the board of Tata Sons under N Chandrasekaran has ordered its group companies to scrap all business dealings with Cyrus and Shapoor Mistry’s SP Group. Almost 50 companies of the SP Group will be affected by the Tata Sons board decision taken on August 9, it said.

The report said that when Mistry took over as chairman of Tata Sons, it was agreed that the Tatas will curtail and cease all business dealings with each other due to possible conflicts of interest. However, this rule affected only the new manufacturing and construction contracts between the groups while existing arrangements in other areas were allowed to continue, report said.

It added that all Tata Group companies are said to be acting on the Tata Sons directive, which came to them on August 14, and has been sent to all group companies including Tata Steel, Tata Power, Tata Chemicals and Tata Motors. Smaller group firms such as Voltas and Trent have also received the order, it said. Tata Sons has not commented so far.

Cyrus Mistry was ousted from the post of chairman of Tata Sons on October 24, 2016. The Tata and the Mistry factions have been engaged in courtroom battles since then.

  1. No Comments.

Go to Top