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In the email, which has been reported by multiple media outlets, Mr. Mistry goes on to say that the Board “has not covered itself with glory.” and he was “shocked beyond words” at its decision.
“The sudden action and lack of explanation has led to all manner of speculation and has done my and the group’s reputation immeasurable harm,” he says.
“The letter is to emphasise the total lack of corporate governance and a failure of the directors to discharge their fiduciary duty to stakeholders of Tata Sons and the group companies,” he says.
Mistry also commented on issues facing various businesses of the group, including the company’s foreign acquisition strategy, the telecom and steel businesses.
In an interview to NDTV, V.R. Mehta, a trustee of the group said that Mistry had breached the ethics of the group. Tata Group's poor financials were the reason behind Mr. Mistry's removal, he said.
A day after the unceremonious removal of Cyrus Mistry, Ratan Tata took charge as the interim chairman of Tata Sons at Bombay House and addressed the managing directors and senior leaders of companies in the group. He asked them to focus on leadership in their respective markets and enhance returns to shareholders, sources close to the development said.
“Tatas have filed caveats seeking notice from Cyrus Mistry fearing legal action,” a statement from the office of the Pallonji Mistry family scion said. “Cyrus has not filed any caveats. He has already made a statement that such concerns are misplaced at this stage.”
A courtroom battle could be protracted and potentially damaging for the reputation of the Tatas, analysts said.
‘A debt-laden enterprise saddled with losses‘
“(He) inherited a debt-laden enterprise saddled with losses and singled out Indian Hotels, Tata Motors’ passenger-vehicle operations, Tata Steel’s European business, as well as part of the group’s power unit and its telecommunications subsidiary as legacy hotspots," Bloomberg quoted Mr. Mistry saying in the email.
(This article was first published in The Hindu Internet edition.)
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