Sacked unceremoniously, a “shocked” Cyrus Mistry has levelled a series of allegations against Ratan Tata and contended that he was pushed in to a position of “lame duck” chairman and changes in decision making process created alternate power centres in Tata Group.
In an explosive confidential email to Tata Sons board members, he accused them of replacing him as Chairman of India’s largest conglomerate of without so much as a word of explanation and without affording him an opportunity of defending himself “in a summary manner” that must be unique in the annals of corporate history.
Mr. Mistry, 48, has been replaced by his predecessor, Ratan Tata, who is back as top boss of India’s largest conglomerate for four months.
As a pre-emptive move against a legal challenge from Mr. Mistry, the Tatas have filed caveats or taken action in a series of courts.
He also added that he faced ‘constant interference’ by his predecessor Ratan Tata. “Was pushed into becoming a ‘lame duck Chairman’,” he wrote.
Mistry further added that he had ‘inherited debt-laden enterprise saddled with losses’.
Slamming Tata directors post his exit; Mistry questioned Nano deal, saying that production cost of Nano car was never below 1 Lakh.
Yesterday, in a mail to the board Mistry expressed utter shock on his ouster stating that the “board has not covered itself with glory” and that he was not given “a chance to defend” himself.
Mistry said that the decision had left him “shocked beyond words”. He also described the board proceedings as invalid and illegal.
In a sudden and dramatic turn of events, Cyrus Mistry was on Monday sacked as Chairman of India’s largest conglomerate Tata Group and replaced by his predecessor Ratan Tata in the interim.
Tata, who was at the helm of the group for 21 years before passing on the baton to Mistry in December 2012, said he has assumed the role of the Interim Chairman for stability and continuity so that there is no vacuum.