Mistry vs Ratan Tata: 3 allegations by ex-Tata Sons chairman before Sebi

Topics Tata vs Mistry

Cyrus Mistry, former chairman of Tata Sons. File photo
The Securities and Exchange Board of India (Sebi) has not seen much merit in the allegations made by former Tata Sons chairman Cyrus Mistry against Tata group flagship companies and Chairman Emeritus Ratan Tata. (Read more) After his ouster, Mistry had shot a letter to Sebi flagging various lapses at Tata group listed companies. Here are the key complaints made by Mistry to Sebi:

Sharing of information with Ratan Tata

Mistry has said that the agenda of board meetings and other sensitive information pertaining to board and committee meetings were being shared with Ratan Tata, who no longer had a full-time role in various Tata group listed companies. This, Mistry had said, raised the risk of violation of Sebi's insider trading regulations. 

Commercial decisions taken by the boards

Mistry had raised questions over major commercial decisions taken by the boards of various Tata group companies. Some of these include Tata Power's decision to bid aggressively for the Mundra Project, Tata Motors' Tata Nano project, losses incurred by Indian Hotels and Tata Steel on overseas operations. Sebi had asked the audit committees of each of the companies to study the allegations. 

Removal of independent director

It was alleged that independent director Nusli Wadia was unfairly removed from the board of Tata Steel, Tata Chemicals, and Tata Motors for supporting Mistry. 

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel