The government will let the developments in the Tata group pan out for some more time before taking a call on the allegations raised in the letter by former chairman Cyrus Mistry and the rebuttal by current Interim Chairman Ratan Tata.
“It is too early. Even though we are deeply concerned that the image of corporate India has taken some beating, it will only worsen the situation if the government takes any step at this juncture,” a top officer said.
The officer said government agencies have noted some of the specific allegations made by Mistry in his letter regarding the impairment of assets in the case of investments in Air Asia and those in NTT DoCoMo.
“These are specific charges that those agencies shall have to look into at some stage,” he said.
The government is particularly concerned that the events from Monday onwards when Mistry was removed as chairman from the board of Tata Sons has smeared the image of India Inc, globally.
“But before we take any precipitate action we have to look at investor reactions including those from abroad. If we do anything right now that could create panic. Before we do anything all those will have to be very carefully thought through”, the officer said.