Annual reports of Tata firms deny allegations

Major Tata group firms, including Tata Motors, Tata Steel and Indian Hotels, have relied on annual reports to tell their shareholders that allegations of breach of corporate governance norms levelled by Cyrus Mistry were incorrect and made without exercising proper care. Mistry, who was sacked as Chairman of Tata Sons -the promoter of major operating Tata companies -in October last year, had cited specific instances pertaining to different companies to raise ethics and corporate governance lapses.

He had raised issue of Tata Motors being unable to shut down loss-making Nano project due to "emotional reasons" involving Ratan Tata. Closing the project which had a peak loss of Rs 1,000 crore would have also stopped the supply of "gliders" to an entity that makes electric cars in which Tata had a stake, Mistry had alleged. Without specifically referring to the issue, Tata Motors in its annual report for 2016-17 said: "Allegations against your company and its governance were incorrect and such statements were made without exercising proper care". Tata Steel also refuted Mistry's claims that Ratan Tata's ego led to "overpayment" for UK steelmaker Corus.

Similarly, in its annual report for 2016-17, Tata Power said there were "allegations made regarding the ethics and governance of the company" and "we categorically deny these references..."