In a a bid to prove alleged violation of corporate governance and interference, Cyrus Mistry has submitted to the National Company Law Tribunal (NCLT) internal emails that allegedly show that Tata Sons Chairman Emeritus Ratan Tata and Tata Trust Managing Trustee R Venkataramanan had sought price information, material and product costs of various Tata Motors’ vehicles.
The Mistry camp has raised conflict of interest issues as Venkataramanan is also a Director of RNT Associates, a firm that has invested in Jayem Automotives. RNT Associates is Ratan Tata’s personal investment vehicle, and as part of funding new-age firms, Tata had invested in Jayem, a Coimbatore-based automobile development and design firm.
An email was sent by Venkataramanan in September 2016 to Tata Motors Chief Financial Officer C Ramakrishnan seeking selling price and direct material costs of models such as Indica, Indigo, Zest, Bolt, Nano and Tiago.
Historical data, material cost increases and cost reductions relating to Nano were also sought.
The letter also sought the average monthly sale volume for each model for the previous six months, the affidavit added.
A number of emails — seeking information on material cost of engines, drive trains and chassis — have also been submitted as ‘exhibits’ before the NCLT. The next hearing at NCLT is on February 13.
‘Routine nature’While the Tata spokesperson did not comment, a senior executive close to the Tata Group said the information sought by Venkataramanan and Ratan Tata’s office appears to be very routine in nature.
On Monday, shareholders voted to remove Tata Sons’ ousted Chairman Cyrus Mistry as a Director, a position he had held since 2006. The NCLT is the only hope for Mistry in this battle.