The Tata Group on Wednesday hit back at recently ‘replaced’ Tata Sons Chairman Cyrus Mistry, saying the unceremonious ‘removal’ was “as per articles of Association”. Tata sources to CNBC-TV18 made it clear that it was “within board’s power to remove Mistry”. Criticising Mistry over his email to Tata Sons board members, the sources asked “how is he lame duck when his letter claims credit for turnaround?” Rejecting the letter as “political drama and emotional outburst”, the sources questioned the timing of it. “Why did Mistry not come out with issues before this?”
Earlier on the day, a “shocked” Mistry levelled a series of allegations against Ratan Tata and contended that he was pushed into a position of “lame duck” chairman and changes in decision making process created alternate power centres in Tata Group. In an explosive confidential email to Tata Sons board members, he accused them of replacing him “in a summary manner” as Chairman of India’s largest conglomerate without so much as a word of explanation and without affording him an opportunity of defending himself that must be unique in the annals of corporate history.
In the letter, Cyrus Mistry further said he could not believe that he was removed for poor performance as the net worth of the company rose to Rs 42,000 crore from 26,000. He further said that except Jaguar Land Rover and Tetley, the group has large debt overhang and Tata Chemicals still needed to take the tough decision about its Its UK & Kenya operations. Writing further, Cyrus Mistry said that the forensic probe revealed fraudulent transactions worth Rs 22 Cr In AirAsia, the CNBC TV 18, has said. The channel has said it has not verified authenticity of the letter.
Cyrus Mistry went on to say that the original Tata Docomo deal structure raises many questions about its prudence and also that Tata Power aggressively bid for the Mudra project, which accounts for 40 percent of Tata Power’s capital employed.