Tata says Mistry’s removal was "absolutely necessary” for success
"The decision to change the leadership of Tata Sons was a well-considered and a serious one for its board members,� Tata said in a new letter sent to employees
Days after replacing Cyrus P. Mistry as the Chairman of Tata Sons, Ratan Tata on Tuesday said the removal of Mistry was "absolutely necessary" for the future success of the company.
Mistry, who was chosen as Tata’s successor in November 2011, was recently removed the post citing a “lack of performance”.
In a new letter sent to employees, Interim Chairman Ratan Tata said: "The decision to change the leadership of Tata Sons was a well-considered and a serious one for its board members.”
“This difficult decision, made after careful and thoughtful deliberation, is one the board believes was absolutely necessary for the future success of the Tata Group," he added.
After the surprise departure, Mistry had also alleged inappropriate interference by Ratan Tata saying, “apart from the invalidity and illegality of the business that was conducted, I have to say the board of directors has not covered itself in with glory,” in a confidential letter sent to executives.
However, the Tata Sons has accused Mistry of making “unsubstantiated claims and malicious allegations” against the conglomerate as the gloves came off in a bitter and highly public row over his sacking.
Dismissing Mistry’s claim’s in the letter, the Tata group said: “the correspondence makes unsubstantiated claims and malicious allegations.”
Earlier, a day after taking over as the Interim Chairman of Tata Sons, Ratan Tata had met CEOs of Group companies and told them to work towards taking the companies to leadership positions in their respective businesses.
“The companies must focus on their market position vis-à-vis the competition, and not compare themselves to their own past,” he said, addressing managing directors and senior leaders of Tata companies.
Meanwhile, BJP Rajya Sabha member Subramanian Swamy wrote to Prime Minister Narendra Modi on Friday seeking a Special Investigation Team (SIT) probe against industrialist Ratan Tata for alleged money laundering.
Swamy, in a letter addressed to the Prime Minister, cited four criminal offences allegedly committed by Ratan Tata and said that he must be “prosecuted with full vigour and without interference of any in the government to protect him”.