A day after Cyrus Mistry’s letter alleging ‘corporate misgovernance’ in the Tata group companies kicked up a storm, Tata Sons hit back on Thursday and said the former chairman was fully empowered to l
A day after Cyrus Mistry’s letter alleging ‘corporate misgovernance’ in the Tata group companies kicked up a storm, Tata Sons hit back on Thursday and said the former chairman was fully empowered to lead the group and its companies but had “overwhelmingly” lost the confidence of board members.
Tata Sons said that the allegations were “malicious” and “unforgivable” and would be responded to in an “appropriate manner” and at an “appropriate forum.”
Taking a serious note of the manner in which communications marked confidential to Tata Sons board members were made public, Tata Sons in a strong statement said, “ it is convenient to put out selective information to defend one’s point of view. There is a multitude of records to show that the allegations are unwarranted, and these records will be duly disclosed before appropriate forums when necessary.”
Justifying its decision to oust Mr Mistry from the top job, Tata Sons said, “It is unfortunate that Mr Mistry had overwhelmingly lost the confidence of the members of the board of directors for a combination of several factors.”
On Mr Mistry’s allegation that his position was reduced to a lame duck chairman, Tata Sons said that the former chairman was fully empowered to lead the group and its companies.
“As the executive chairman, he was fully empowered to lead the group and its companies,” Tata Sons said.
Reacting strongly to several allegations made by Mistry in his letter to the Board members, Tata Sons said: “It is unforgivable that Mr. Mistry has attempted to besmirch the image of the group in the eyes of the employees”.
After Mr Mistry alleged fraudulent transactions at AirAsia India, the aviation ministry said on Thursday that all issues would be looked into and “law of the land will have to be followed” in case of any violation. “Laws as per policies have to be followed. Whatever (issue) anybody raises, they will have to be looked into,” civil aviation minister Ashok Gajapathi Raju told reporters.
The comments come a day after Mistry’s allegations, contained in a confidential letter dated October 25, became public wherein he wrote about certain financial irregularities regarding AirAsia India, where Tatas are a partner, including a “fraudulent transaction” of Rs 22 crore.
