Companies

Mistry files fresh affidavit as proof of Ratan Tata’s ‘meddling’

Our Bureau Mumbai | Updated on January 27, 2018 Published on January 03, 2017

Cyrus Mistry   -  PTI

Cyrus Mistry, the ousted Tata Group Chairman, has filed a fresh affidavit comprising several emails and letters as evidence to show interference in Tata group companies by Ratan Tata.

The affidavit filed with the National Company Law Tribunal, seen by BusinessLine, reveals that the relationship between Mistry and Ratan Tata started deteriorating from 2013, barely a few months after the latter had retired as Tata Sons’ Chairman.

According to Mistry, Ratan Tata continued to control the Tata group companies through nominee directors on the board of Tata Sons. “The operations of Respondent No.1 are being conducted purely to sub-serve the whims and fancies of Respondent No. 2 (Ratan Tata) and Respondent No. 14 (former Tata Sons Vice- Chairman Noshir Soonawala) and the tools of oppressive conduct are the Articles of Association and the special powers vested in the office of the directors nominated by the trustees of Tata Trusts,” Mistry said in the affidavit.

Mistry said initially the interventions were about small matters and the tone “respectful” and “suggestive”. Over time, Mistry realised that he was having to manage the demands and views of Ratan Tata on a full-time basis as a rule.

For example, in 2014 when Tata Motors wanted to raise funds through equity issuance, the matter was explained to Soonawala, then a trustee of Tata Trusts. However, when Tata Motors actually proceeded with the proposal, Ratan Tata sent a letter to Mistry claiming that there was no discussion and that the Article of Association (AoA) had been breached.

Mistry said Ratan Tata had started asserting the need to see plans and proposals of Tata group companies failing which he would threaten and allege a breach of AoA. “In short, without even being a director on the Board of Directors of Tata Sons, he (Ratan) wanted information to be shared with him and Soonawala,” Mistry said in the affidavit.

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Published on January 03, 2017
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