Former Tata Sons chairperson Cyrus Mistry on Monday was removed as the Director of Tata Industries, a spokesperson for the holding company said, according to ANI. Tata Sons has called Extraordinary General Meetings at the six companies where Mistry still serves as a board member for removing him from his position. The ousted chairperson was removed as Tata Industries Director at one such meet.
In a statement to its shareholders, Tata Sons said there is a possibility of the group being fragmented if Mistry continues to remain as the head of its member companies, The Times of India reported. “Tata companies and Tata Sons have, for many decades, worked cohesively and seamlessly for the benefit of all stakeholders...all such benefits are likely to be at stake if Mistry continues to remain chairman,” the statement said.
Mistry was only appointed to the board of the companies as he was the chairman of Tata Sons, the statement said, adding that it was necessary for him to step down from his post in Group companies following his dismissal as chairman.
On Sunday, the holding company also accused Mistry of misleading the 2011 selection committee set up to appoint Ratan Tata’s successor. It also alleged that the former chairperson took advantage of his position to “systematically” dilute the representation of Tata trusts on the boards of Group companies.
However, Mistry levelled counter-accusations against the group, accusing Tata Sons Director Vijay Singh of cooking up theories to defend his role in Ratan Tata’s conspiracy to oust him. He also alleged that Singh played a pivotal role in the Rs 3,600-crore AgustaWestland chopper scam.
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.