Nusli Wadi, who is at loggerheads with Ratan Tata for ousting him as independent director of group companies, has made a suggestion to wipe out the ₹8,600-crore debt of the company while making serious allegations against the promoters.

Tata Chemicals has large cross holdings in various group companies such as unlisted Tata Sons, Tata Teleservices, Tata Projects, Tata Industries, Tata Services, Taj Air, Tata International and Tata Capital and listed companies Tata Motors, Tata Steel, Tata Global Beverages, Titan Company, Tata Investment Corporation and The Indian Hotels.

Value of shares

The value of unlisted shares is over ₹7,200 crore while that of other shares is about ₹1,300 crore. If these holdings were to be disposed, Tata Chemicals would be debt-free, he said.

In a 12-page letter to shareholders ahead of the extraordinary general meeting on December 23, Wadia said he opposed the decision to buy UK’s Brunner Mond Group for ₹800 crore and Hind Lever Chemicals (Haldia plant) merger which involved an investment of ₹347 crore.

Raising serious corporate governance issue, Wadia said the company’s Managing Director (R Mukundan) had conveyed that he would record and communicate any reference made to the Chairman (Cyrus Mistry) through the office of the company secretary.

He had also convened a meeting of the senior management to append their signatures on a pre-drafted letter seeking to endorse the stand of Tata Sons.

“Those who were present at the meeting were advised that if they did so, their interests would be protected by the Tata Sons. Upon enquiry by the Board Members, the Managing Director had accepted the same,” said Wadia.

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