Tata Sons hit back at allegations made by the ousted chairman Cyrus Mistry, saying it is not based on facts and it will release documents at “proper forums” to prove Mistry’s allegation are baseless.
“It is a matter of deep regret that a communication marked confidential to Tata Sons board members has been made public in an unseemly and undignified manner,” Tata Sons replied on Thursday. Tata also said that Mistry was replaced because he had lost the confidence of the board.
Tata Sons says that Mistry was fully empowered to lead the group and its companies and he was party to forever a decade in the business operations that he has flagged as problematic in the lengthy email.
Tata said Mistry’s letter had damaged the group’s image infront of its six-lakh plus employees, whose spirit and cooperation built the group.
Cyrus Mistry’s family own The Shapoorji Pallonji Group, which owns 18.4% stake of the $103-billion Tata Group.
Mistry lose the confidence of the board partly because he moved to sell foreign assets that had been acquired by his predecessor like the company’s UK steel operation . The “mismatch” of values between Mistry and the group is also another reason.
