Ousted Tata Sons chairman Cyrus Mistry, who resigned from the boards of group companies on Monday, claimed he had brought up the issue of recovery of large sums of money due from Mr. Sivasankaran to Tata Sons, at the September 15 board meeting, securing its approval to initiate legal action.
Alleges leak
However, “within a few days, Tata Sons received a legal notice instead (from Sivasankaran), clearly indicating a leak from Tata Sons. The history of questionable dealings between the Tata Group and him, is a matter of record since he proudly flaunts his close personal bond with Mr. Ratan Tata,” said Mr. Mistry, referring to Mr. Sivasankaran.
Mr. Mistry also alleged that Mr. Tata and Mr. Noshir Soonawala, a trustee of Tata Trusts who had retired from Tata Sons after multiple extensions, had refused to give up participation in key decisions involving Tata Sons and the operating companies, including those listed in India and abroad.
“This has undermined the Tata Sons Board apart from exposing the Tata Group including the Boards of Directors of various listed companies to serious regulatory consequences. Such behaviour has adverse implications for the beneficiaries of the Tata Trusts, which are public charitable trusts,” said Mr. Mistry.
‘Deliberate strategy’
Taking note of Mr. Mistry’s resignation, Tata Sons in a statement said that Mr. Mistry’s resignation was a ‘deliberate strategy on his part, knowing fully well that the overwhelming majority of the shareholders were not in support of his actions.’
“Tata Sons has responded to his charges on multiple occasions and will respond adequately to any allegation made by Mr. Mistry,” the statement said.
