Mehli Mistry lashes out at cousin Cyrus

The ongoing battle between Tata Sons and Cyrus Mistry has also divided the Pallonji family with the ousted Chairman’s cousin Mehli Mistry coming out in support of Ratan Tata.

Mehli has also dismissed allegations made by Cyrus on contracts awarded by Tata Power to his company.

Speaking to BusinessLine , Mehli said contrary to claims made by Cyrus that Tata Power had lost money by giving a shipping contract to Mehli’s M Pallonji group, the power company had made savings of about ₹74 crore over the entire tenure. Cyrus has alleged that Tata Power made savings of about ₹150 crore when contracts were awarded to third parties.

“The contract was awarded by inviting bids. Tata Power has not suffered any loss in the contract with M Pallonji,” Mehli said, adding that from October 2006 to October 2008, his company was executing the contract at much lower value compared with the then prevailing market rates, which has not been taken into consideration by Cyrus while alleging the loss to Tata Power.

Mehli also questioned Cyrus’ silence during the four years as Chairman of Tata Sons. “There has never been any dissent by Cyrus Mistry about these contracts. It was only after his ouster that he started making false allegations that M Pallonji unjustly enriched itself on account of my close friendship with Ratan Tata,” Mehli said.

The M Pallonji Group has a presence in construction, shipping and finance, among other sectors, through the group’s various firms. Mehli’s mother and Cyrus’s mother are sisters, while their fathers are also first cousins.

In his filing with National Company Law Tribunal (NCLT), Cyrus Mistry had levelled many allegations with the most serious one being that of Tata Power awarding contracts to M Pallonji & Co without calling for tenders.

Cyrus also alleged that Tata Power awarded an eight-year contract in 1994 for dredging works to M Pallonji without having adequate experience.

“On August 27, 1993, a tender inquiry was floated by Tata Power, where M Pallonji was the lowest bidder. The contract was awarded on a trial basis for one year. Subsequently, as the work was carried out to the satisfaction of Tata Power, in 1995 an eight-year contract was awarded to us,” Mehli said. On Mistry’s allegation that Mehli had used the Tata Power chopper, Mehli said he had paid for it. The NCLT petition also mentions transfer of a luxury apartment in Colaba (Bhaktawar), South Mumbai, and a property in Alibaug by Mehli to Ratan Tata.

“This is a deliberate attempt to malign me and Ratan,” Mehli said, adding that the allegation that he was behind the ouster of Cyrus was untrue.

“I was in Dubai when it happened. I came to know about it from media only. I am not part of any Tata group company or management. Ratan Tata is my friend and mentor, and I don’t see any other reason for dragging my name into this controversy,” he told BusinessLine .

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