Tata Group chairman Ratan Tata on Tuesday send a letter to his employees saying the removal of Cyrus Mistry as the head of Tata Sons was a “a well-considered but difficult decision made after careful, thoughtful deliberations,” PTI reported. Tata said the decision, which as thrown the $103-billion conglomerate into turmoil, was “absolutely necessary” for the group’s success.
This is the second letter Tata has sent to his employees since Mistry was ousted on October 24. In it, he also states that the company is looking for a “world class leader” to replace Mistry. Tata has taken over his role temporarily.
The letter comes hours after a statement from Mistry's office said that the charges against him in connection with Docomo deal were baseless. It said that Tata Sons signed the agreement with Docomo in 2009 before he was appointed to the role.
The statement comes in the backdrop of Tata Sons officials hinting that Mistry will “be made the fall guy” once the Docomo deal is examined. Docomo had bought a 26.5% stake in Tata Teleservices Ltd. In 2014, it decided to exit the deal and asked Tata Sons to find a buyer for its stake at a pre-determined price.
However, the Reserve Bank of India said that foreign investors cannot sell stakes in Indian companies at a pre-determined price, reported NDTV. The matter went to the arbitration court and the deal cost Tata Sons $1.2 billion (nearly Rs 8,000 crore).