Ousted Tata Sons chairperson Cyrus Mistry misled the 2011 selection committee set up to appoint Ratan Tata’s successor, the group alleged on Sunday. Mistry, who was removed from his position in October, has also been accused of not distancing himself from the Shapoorji Pallonji Group, the conglomerate owned by his family, PTI reported.
Tata Sons alleged that Mistry did not utilise effective management techniques despite making “lofty statements” about his plans for the Tata Group. He took advantage of his position to weaken management structures and also “systematically” diluted the representation of Tata trusts on the boards of Group companies, Tata Sons further said.
It further added that income from dividends declined under Mistry’s tenure, with staff costs more than doubling. Moreover, the ousted chairperson also allegedly retracted from the commitments he made, creating concerns regarding his ability to head the group.
The statement by Tata Sons is the latest in a series of accusations made against its former chairperson. On December 7, Interim Group Chairman Ratan Tata had said that Mistry rejected an offer to voluntarily step down from his position as chairperson. He added that Mistry was ousted because the board of Tata Sons had “lost confidence in him and in his ability to lead the Tata Group in the future”.
Mistry has also leveled counter-accusations against the group. His office on Sunday accused Tata Sons Director director Vijay Singh of cooking up theories to defend his role in Ratan Tata’s conspiracy to oust him, reported ANI. He also alleged that Singh played a pivotal role in the Rs 3,600 crore AgustaWestland choppers scam. “As defence secretary, Singh was a key official involved in award of Rs 3600 crore VVIP helicopter contract to AugustaWestland in 2010,” read a statement from Mistry’s office.
Earlier, Mistry has said that companies were exposed to regulatory violations by “individuals prone to impulsive control”. He had alleged that the individuals were “seeking to procure price sensitive information from listed Tata Group co[mpanie]s, breaking down governance” at the firms, emphasising that he was fighting to protect the companies from Ratan Tata.
The ousted chairperson had earlier claimed that investigations into AirAsia’s accounts had revealed fraudulent transactions worth Rs 22 crore, after which the Enforcement Directorate filed a case against the airline. Mistry, who was removed from the position on October 24, had also accused the Tata Sons board of “wrongful dismissal”, adding that they faced $18 billion (Rs 1.15 lakh crore approximately) in write downs or reduction in value of assets.