Shapoor Mistry resigns from Indian Hotels board

MUMBAI: In a major fallout of the feud between the Tata group and Cyrus Mistry, a director with seats in Tata and Wadia Group companies decided to step down from the latter on Tuesday, while Mistry’s brother resigned from the board of Indian Hotels.

Shapoor Mistry, elder brother of former Tata group chairman Cyrus Mistry, stepped down from the board of Tata-owned Indian Hotels. Also, Nasser Munjee has resigned from the boards of biscuit maker Britannia and domestic carrier GoAir.

Shapoor Mistry’s resignation has been accepted and was conveyed to the stock exchanges on Tuesday but Munjee’s resignation from the Wadia Group companies is yet to be accepted, said two people aware of the matter.

Shapoor Mistry — chairman of Shapoorji Pallonji & Co Ltd — had joined the board as an independent director in 2003. Nusli Wadia and Naseer Munjee were unavailable for comment.

Top officials close to the development said Shapoor Mistry may have taken the decision after the recent National Company Law Tribunal (NCLT) ruling that favoured Tata Sons. "There was no pressure whatsoever on Shapoor to quit. He may have been uncomfortable to stay on the board after Cyrus’ ouster," said an official.

Nusli Wadia, who was an independent member on the board of Tata Motors and Tata Steel was seen as being sympathetic to Mistry. Operating companies of the Tata group had to call special extraordinary general body meetings to remove Cyrus Mistry and Nusli Wadia from the boards of several companies.

Mistry was eventually ousted from the board of Tata Sons and earlier from software firm TCS.

He resigned of his own accord from boards of other Tata group companies. Wadia contested the removals but lost, as the shareholders voted him out of the boards. Munjee was one of the few moderate voices on the boards of Tata group companies, as he tried to find a middle ground that protected stakeholders’ interests.

Some officials close to Wadia said Munjee had conveyed his intention to Wadia, speaking of his discomfort with being on the boards of both Wadia and Tata group companies after the legal spat between Tata and Wadia.

"Wadia had apparently conveyed to Munjee that he had no issues about it and that it would be Munjee’s personal decision," an official told ET.

Munjee is also on the board of one of the Tata trusts.