Miffed and shocked over his sudden removal chairman of Tata Group, Cyrus Mistry has written an email to Tata Sons Board members and blamed that he faced constant interference by his predecessor, Ratan Tata, to the point that he was pushed into becoming a “lame duck” chairman.
Mistry gave an example of Tata Nano, which was a severely loss making enterprise that should be immediately shut down. He claimed that for emotional reasons alone he was kept away from this crucial decision.
Despite plowing 1.96 trillion rupees into those units, they still face challenges and realistically assessing their fair value could result in writing down about 1.18 trillion rupees over time, he wrote.
Mistry had described his removal as “unprecedented” in India, saying he was ‘shocked’ at the manner in which he was removed. Mistry claimed he had not been given a chance to defend himself before being ousted. However he said he was not considering legal options at this stage.
However, in an interview to a media channel, 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 Mistry’s removal, he said.
After 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.