Ousted Tata group Chairman Cyrus Mistry launched another attack on Ratan Tata on Tuesday, stating that his fight was to protect the Tata group from “capricious decision-making by the interim chairman”.
Tata Sons, in its statement on Monday, had accused Mistry of converting the group into his “personal fiefdom”. This was in response to an early statement from Mistry’s office, which said that the Tata group is “no one’s personal fiefdom”.
Mistry’s latest statement also said that far from him taking control of all Tata group activities, his performance was scrutinised by nearly 50 individuals under the governance guidelines.
“This approach empowered the boards of both Tata Sons and Tata group operating companies. It created an effective check and balance against any individual becoming larger than life. So, there was no question of anything remotely like what is sought to be alleged,” the statement countered.
‘Tata statement vague’ “The (Tata Sons) statement is vague in detail but seeks to dismiss charges contained in Mistry’s representation to various Tata group companies,” said the release from Mistry’s office. The statement is “neither sound nor sheds any light”, it added.
Mistry’s family has an 18 per cent stake in Tata Sons, and if he were to “break away” Tata group companies from Tata Sons, it would be hurting his own family’s financial interests, it said.
In a reference to the trustees of Tata Sons, the statement said that these individuals are “prone to impulsive control” and have inflicted severe damage and enormous financial losses on all the stakeholders of the Tata group.
“They have also exposed the Tata group to perilous violation of regulatory requirements, seeking to procure unpublished price sensitive information from listed Tata Group companies, breaking down governance,” it added.
Tata Sons immediately responded to the allegations and accused Mistry of violating the guidelines that he himself propounded.
‘Cyrus not an employee’ “The same corporate governance guidelines Mistry’s office is referring to prescribe that a Tata employee must step down from the boards of Tata companies after he ceases to be a Tata employee. After being replaced as Chairman of Tata Sons, Mistry ceases to be a Tata employee,” it added.
Countering Tata Sons’ statement, a source in the Mistry camp said that the process of removing the chairman was “illegal” and that he “still continues to be an employee”.