Mistry made malicious allegations: Tata Sons

Dismissing allegations made by Mistry, the company also said that its board had repeatedly “raised queries and concerns on certain business issues” but “these were not being addressed.” “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. The correspondence makes unsubstantiated claims and malicious allegations, casting aspersions on the Tata group, the Tata Sons board and several Tata companies and some respected individuals,” a Tata Sons statement said. 

“These will be responded to in an appropriate manner,” it added. Cyrus Mistry’s email on Tuesday to directors of Tata Sons, a day after they voted to remove him as Chairman, contains allegations of “aggressive accounting” and fraudulent payments, and warns of potential write downs of losses of $18 billion at five group companies. “It will be beneath the dignity of Tata Sons to engage in a public spat with regard to the several unfounded allegations appearing in his leaked confidential statement,” the Tata Sons statement said. “There is a multitude of records to show that the allegations made by Cyrus Mistry are unwarranted and these records will be duly disclosed before appropriate forums, if and when necessary, sufficiently justifying the decision made by responsible Boards of Directors. 

“Allegations are not based on facts or the true state of affairs,” it said.  “The Directors of the Tata Sons board had repeatedly raised queries and concerns on certain business issues, and Trustees of the Tata Trusts were increasingly getting concerned with the growing trust deficit with Mistry, but these were not being addressed. The Tata Sons board, in its collective wisdom, took the decision to replace its Chairman in the manner undertaken,” the statement said. It may be recalled that in a five-page letter sent to the board members and trustees, Mistry, who was removed without notice as Chairman of Tata Sons, had said a fraudulent transaction of Rs 22 crore had emerged after forensic investigation into the Air Asia deal involving non-existent parties in India and Singapore. 

“Board members and trustees are also aware that in the case of Air Asia, ethical concerns have been raised with respect to certain transactions as well as the overall prevailing culture with the organisation,” Mistry said in his letter where he called the board’s action against him “shocking” and “invalid.”