Tata Sons Hints At Coup At­tempt By Cyrus Mistry

Bat­tle for con­trol of the Tata Group con­tin­ues un­abated

Fiji Sun - - Comment - EX­PRESS NEWS SER­VICE |

The bat­tle for con­trol of the In­dia’s Tata Group con­glom­er­ate con­tin­ues un­abated, with a se­ries of de­vel­op­ments on Thurs­day shift­ing fo­cus firmly to the Group’s in­di­vid­ual com­pa­nies, where erst­while Tata Sons chair­man Cyrus Mistry still re­mains chair­man. In a scathing point by point state­ment, Tata Sons’ said that Mr Mistry had “be­trayed” the trust of the board by seek­ing for, and try­ing to re­main, in con­trol of the in­di­vid­ual com­pa­nies even after be­ing re­moved as chair­man of the hold­ing firm.

Just hours be­fore re­leas­ing the ninepage state­ment, Tata Sons’ wrested con­trol of the Group’s most lu­cra­tive firm -- Tata Con­sul­tancy Ser­vices -- by ap­point­ing Ishaat Hus­sain as chair­man in the place of Mistry. In its let­ter, Tata Sons said that Mistry had, dur­ing his four year ten­ure at the helm, “clev­erly en­sured” that he would be the only Tata Sons rep­re­sen­ta­tive on the Board of op­er­at­ing Tata com­pa­nies, in­clud­ing IHCL, where in­de­pen­dent direc­tors had ex­pressed their sup­port for him last week. Tata Sons took a dim view of what they said was an at­tempt to take con­trol of the firm. “In hind­sight, the trust re­posed… in Mr Mistry...has been be­trayed by his de­sire to seek to con­trol main op­er­at­ing com­pa­nies,” said the state­ment, adding, “this strat­egy… seems to have been a clever strat­egy planned and sys­tem­at­i­cally achieved over the last four years.” Fol­low­ing the state­ment, IHCL called for an Ex­tra­or­di­nary Gen­eral Meet­ing to re­move Mistry from the board. How­ever, yet an­other Tata firm, Tata Chem­i­cals, filed a state­ment with the stock ex­changes late Thurs­day evening stat­ing the in­de­pen­dent direc­tors “unan­i­mously” backed Mistry as its Chair­man.

Ousted chair­per­son Cyrus Mistry (left) has been re­placed by for­mer chair­per­son at the Tata Sons board Ratan Tata.

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