Mumbai: Ousted Tata Sons Chairman Cyrus Mistry's camp on Thursday termed as “unsubstantiated claims and half truths” a series of allegations by the company, which stated that he betrayed trust and tried to seek control of main operating firms of the over USD 100 billion group.
Responding to a statement by Tata Sons, sources close to Mistry said after 17 days of silence on his “unjustified and unexplained removal”, there was still no “word of explanation as to why it became necessary to remove him summarily violating natural justice and without explanation”.
The statement, they said, “has not much but selective data, unsubstantiated claims and half truths”.
On claims that Mistry had an 'ulterior motive' of taking control of companies, a source said: “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.” The sources also said removing TCS from data in assessing Mistry's performance stating he does not really contribute materially to the company 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”.
Mistry camp also refuted allegations of “significant issues of conflict of interest in relation to the Shapoorji Pallonji Group” saying “it is a smear campaign unworthy of either the Tata Group or a response, particularly when it (is) known that Mr Mistry had instructed all Tata companies not to enter into new contracts with that Group”.
Insisting that the Nomination and Remuneration Committee (NRC) of Tata Sons lauded Mistry's performance on June 28, the sources said 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,” a source said.
