Mistry misled to become chairman, retracted on promises: Tatas

TIL Desk/Business/New Delhi-Escalating the boardroom battle at India’s largest conglomerate, Tata Sons today charged Cyrus P Mistry of misleading to get selected as Chairman, retracting on his promises, concentrating powers and using free-hand given to him to weaken management structures.

Days ahead of meetings of shareholders of group companies to consider removing Mistry from board of key listed companies, Tata Sons said it is bringing out “key facts” that resulted “in the loss of confidence” in him and leading to his removal.

Tata Sons said Mistry “misled” the Selection Committee set up in 2011 for selecting a Chairman of Tata Sons to succeed Mr. Ratan Tata, by “making lofty statements about his plans for the Tata Group and more importantly indicated an elaborate management structure for managing the Tata Group, given its diversity of business, by suggesting a management structure aimed at dispersal of authority and responsibility.”

“These statements and commitments from Mr. Cyrus Mistry played an important role in the Selection Committee’s final selection of Mr. Mistry as Chairman. After waiting for a period of four years, almost none of these management structures and plans have been given effect to. Clearly, in our opinion, the Selection Committee was misled in its choice of Mr. Mistry,” it said.