Two of the Tata group’s retired stalwarts, FC Kohli and B Muthuraman, have come out strongly backing Ratan Tata, saying there is no truth in the allegations made by Cyrus Mistry on TCS and Corus.

Kohli, the former CEO and Deputy Chairman of TCS, said that Mistry’s allegation that Ratan Tata had brought a proposal to sell the IT company to IBM was untrue.

Separately, B Muthuraman, former Vice-Chairman and MD of Tata Steel, dismissed Mistry’s claim that the decision to buy Corus was based on Ratan’s ego.

Mistry’s office had on Tuesday said that TCS faced a near-death experience at the hands of Ratan Tata. Mistry said that Ratan had brought a proposal to sell TCS to IBM but it was JRD Tata and Kohli who decided against it.

Terming Mistry’s claims as incorrect, Kohli, who founded TCS and was its first CEO, said that there was never an intention to sell TCS to IBM.

“Mr Cyrus Mistry’s comments regarding the sale of TCS to IBM at some ‘unspecified point in time’ are not correct,” Kohli said, adding that he was actively involved in the decision to bring IBM to India for a joint venture for hardware manufacturing.

Tata IBM was set up in 1991-92. This JV was undertaken to promote a computer hardware unit in India. “I would like to reiterate that at no point at that time was there ever an intention of the Tata Group to sell TCS to IBM,” Kohli said.

Mistry had said on Tuesday that JRD Tata refused to discuss the proposed deal with IBM because Kohli was still recovering in the hospital

Referring to the timeline, Kohli said that his “heart by-pass surgery” took place in 1984. “Mr JRD Tata was interested in my health and progress after the surgery ... He also wanted to know when I would be well enough to return to India. He wanted to discuss Burroughs proposal for software work in India under Tata Burroughs, which might affect TCS’ business.”

‘Corus deal got board’s nod’ On Corus, Mistry had alleged that the decision to acquire the steelmaker for over $12 billion, when it was available at less than half that a year earlier, “was based on one man’s (Ratan) ego” and against the reservations of some board members and senior executives.

Trashing this version, former Tata Steel chief Muthuraman said: “I am surprised and very sad to see the speculative and biased views being fed in the media regarding the acquisition of Corus nearly a decade back in early 2007.”

“The board of Tata Steel was deeply involved in all the deliberations and had approved the transaction. The value of Corus increased since the initial bid was in line with the commodity price boom, its underlying performance and the transaction process. The acquisition was through a transparent auction process ... and the acquisition price was £50 million higher than the next bidder,” he said, adding that the global financial crisis in 2008 had a very significant adverse impact on the industry fundamentals in Europe, which also impacted Corus.

Mistry responds Reacting to the statements issued by the two former executives, Mistry’s office clarified that he agreed with Kohli that there was no intention of the Tata Group to sell TCS to IBM or any other firm.

“The statement Mr Mistry made was based on information from sources who were close to JRD Tata, who informed him that it was Ratan Tata’s intention, and not the group’s intention, to sell TCS,” Mistry’s office said.

On Corus, Mistry did not say the ultimate decision was not unanimous, his office pointed out, “but there were differences ... the fact that Corus was available for purchase at half the price in the recent past is undisputed.”

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