India’s Tata Sons has hit again at Cyrus Mistry, after its former chairman, who was sacked on Monday, launched a blistering assault on the report of Ratan Tata, his predecessor, in a leaked e-mail.
The administrators of the holding firm of Tata Group broke their silence on the explanations for the dismissal in a strongly worded assertion on Thursday accusing Mr Mistry of creating “unsubstantiated claims and malicious allegations”.
The conglomerate stated the previous chairman had made “repeated departures from the tradition and ethos of the group”. It was “unforgivable that Mr Mistry has tried to besmirch the picture of the group within the eyes of the workers”.
In probably the most explosive allegations, Mr Mistry, forty eight, stated 5 of the Tata Group’s largest companies confronted asset writedowns value $18bn. The leaked e-mail he despatched to the administrators of Tata Sons on Tuesday additionally contained allegations of “aggressive accounting” and fraudulent funds. He accused Mr Tata, who has assumed the position of interim chairman, of undermining his management.
Mr Mistry stated Tata Sons administrators had sacked him “with out a lot as a phrase of rationalization” — an motion he condemned for its “invalidity and illegality”.
However in its assertion, Tata stated the administrators have been “not a gaggle of people that one would anticipate to behave with out exercising correct judgment in one of the best pursuits of the entities they sit on the boards of”.
It was “unlucky that Mr Mistry had overwhelmingly misplaced the arrogance” of the administrators “for a mixture of a number of elements”. Administrators had “repeatedly raised queries and considerations on sure enterprise points and trustees of the Tata Trusts have been more and more getting involved with the rising belief deficit with Mr Mistry, however these weren’t being addressed”.
The seven hundred-phrase assertion doesn’t handle the precise allegations about its companies that its former chairman raised in his e mail. However is bracing for lawsuits from Mr Mistry. It has filed “caveats” in Indian courts, which require it to be notified of any courtroom motion that he takes towards the corporate.
“It’s a matter of deep remorse that a communication marked confidential to Tata Sons board members has been made public in an unseemly and undignified method. The correspondence makes unsubstantiated claims and malicious allegations, casting aspersions on the Tata Group, the Tata Sons board and a number of other Tata corporations and a few revered people. These will probably be responded to in an applicable method.”
It added: “There’s a multitude of data to point out that the allegations made by Mr Cyrus Mistry are unwarranted and these data shall be duly disclosed earlier than applicable boards, if and when crucial, sufficiently justifying the choice made by accountable boards of administrators of Tata Sons and its group corporations.”
Mr Mistry didn’t instantly reply to a request for remark.