Talking to FE, corporate advocate Ravi Sikri said Tatas are diverting funds in the same field. They can always do such a thing. Legally Tata has a sound case. After all they are now a major shareholder. Mr Ashwini Kumar, senior Supreme Court advocate and a newly-elected member of Rajya Sabha, said the VSNL board is fully within its competence to take management decisions it thinks prudent and in the best interest of the company. The company can take such decisions as long as the decision is within the scope of the objectives of the company and is not arbitrary or actuated by extraneous considerations, he said adding that this is a well-settled legal position.
Mr Upmanayu Hazarika, an advocate, too expressed similar opinion when he said, as long as it is a duly constituted board and it has the authority to take such a decision, there is no reason why they cant do it.