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

MUMBAI: In response to a long stinker sent by Tata Sons , on Tuesday, sources close to Cyrus Mistry say – ‘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’.

“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,” say the sources.

To allegations on unfair conduct between Shapoorji & Palonji and Tata Sons, the source added that “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”.

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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, added the sources.

The Nomination and Remuneration Committee of Tata Sons lauded 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, confirmed the sources.

The sources added that - 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”.