Former Chairman of Tata Sons Cyrus Mistry fired a fresh salvo on Monday saying that Ratan Tata’s personal investments are in direct conflict with the business interests of the Tata Group.
The ousted chief, in a statement, said: “Nothing can be starker than his (Ratan Tata’s) former executive assistant and current Managing Trustee of the Trusts, seeking material cost-related information from Tata Motors even while assisting a private company in which Tata has a personal investment.”
The former Chairman disclosed that in 2009, when Tata Motors went through a major cash crisis, but still had to build the Nano plant in Gujarat and had to expand its commercial vehicle plants, it was the Shapoorji Pallonji Group that extended significant credit limits and even raised debt on its own balance sheet to extend support.
Mistry’s statement follows comments by Ratan Tata in an interview to
Mistry’s office said that there was no conflict of interest as claimed by Ratan Tata.
“The discussions between Tata and Mistry at the time of Mistry’s selection and thereafter, never involved putting an end to the historical commercial transactions between the Tata Group and the Shapoorji Pallonji Group. It revolved around a disclosure regime and Mistry not being involved with the SP Group’s decision-making processes.”
“Mistry implemented voluntary disclosures of transactions with the SP Group, irrespective of value, over and above requirements of law. In addition, he mooted an “Independent Governance Committee” comprising three persons, all to be nominated by the Tata Trusts to review and consider for approval any related party transaction. This framework would stand the test of global public scrutiny and ensure that Mistry was entirely disassociated with any transaction with the SP Group,” the statement added.