Mistry camp responds to letter bomb, says Tata press release just baseless claims and half-truths

In a bitter war of words that played out in full media glare, sources close to Cyrus Mistry today responded to the barbs made by Tata Sons in a letter which listed the ousted Tata Group chairman's alleged wrongdoings. Here is what the Mistry camp has wrote:

After 17 days of silence on the unjustified and unexplained removal of Cyrus P. Mistry as Chairman of Tata Sons, the Tata Sons nine-page “press release” has not much but selective data, unsubstantiated claims and half truths without a word of explanation as to why it became necessary to remove him summarily violating natural justice and without explanation.

To remove TCS from the data contending that “Mr. Mistry does not really contribute materially to TCS” and to blame him for all problems inherited by him such as Tata Motor’s passenger vehicle business in India is inherently fallacious to any unbiased observer.

To say “in addition, there were some significant issues of conflict of interest in relation to the Shapoorji Pallonji Group” with nothing to show for it is a smear campaign unworthy of either the Tata Group or a response, particularly when it known that Mr. Mistry had instructed all Tata companies not to enter into new contracts with that Group.

Also read: Tata Sons letter on Mistry’s wrongdoing is baseless, say sources close to Mistry

To allege “ulterior motive” of taking over control of companies, giving the example of Indian Hotels only because independent directors, one of whom is also a director of Tata Trust, demonstrated true independence is not in keeping with Tata governance standards.

The Nomination and Remuneration Committee of Tata Sons lauded Mr. Mistry’s performance on June 28. The NRC’s report was adopted by the complete board the following day. Tata Sons is yet to state what necessitated the replacement of Mr. Mistry on October 24 without any notice or an opportunity to defend himself.

The Tata Sons statement reflects desperation. The statement admits receiving “emails and calls from many across the globe since the Board decided to change the Chairman.” All the “reasons” in the letter, would have, and should have, been tabled and recorded in the minutes of the many Tata Sons board meetings held over four years of Mr. Mistry’s Chairmanship. Unfortunately for them, no such record exists because these allegations are simply not true. The “reason” were not tabled even on October 24. That after 17 days, this is the best that can get said is heart-warming.