Published: Sat, October 29, 2016
Economy | By Melissa Porter

Extended secured term loans to SIHL and SVL: Tata Capital

Extended secured term loans to SIHL and SVL: Tata Capital

Tata Sons, the holding company of Tata group entities, has on Thursday (27 October) rejected all the claims made by the ousted chairman Cyrus Mistry as unsubstantiated and malicious allegations.

Mumbai: Ratan Tata is exploring options to buy out the 18.4 percent stake the Shapoorji Pallonji group has in Tata Sons, according to a report in Bloomberg.

The report also quoted says that Mistry " failed to keep the trust of the Trusts".

"The commission of offences are under Sections 120-B (conspiracy), 403 (dishonest misappropriation of public funds), 405 (criminal breach of trust) and 415 (cheating) of the Indian Penal Code, prima facie documented in Mistry's letter", wrote the Rajya Sabha member. "It is going to slow down decision-making so I think it would be proper for Mr Mistry to step down as chairman from these companies", he told NDTV. Tata Trusts own about 66% of Tata Sons.

Some media outlets, citing sources familiar with the issues, have reported however that one of the issues that led to Mistry's ouster was his failure to keep the Tata Sons board and Ratan Tata informed about Tata Power's roughly $1.4 billion acquisition of Welspun Renewables Energy back in June.

Refusing to be drawn into a point by point clarification of Mistry's letter, the company said, "It will be beneath the dignity of Tata Sons to engage in a public spat with regard to the several unfounded allegations appearing in his leaked confidential statement".

"Ratan was about growth and turnaround, Cyrus believed you could only do that to a certain level but then you have a responsibility to grow returns for your shareholders for which you have to cut debt and be nimble", said another person close to the company, adding that this jarred with the Tata ethos.

Tata Steel, part of the group's power unit and its telecommunications subsidiary as "legacy hotspots". "What is the difference between a family-owned business and Tata Sons?" She said that when the Tata Trust made a decision to appoint Mistry as the chairman, they had to allow for new ideas and new approaches to business and not expect the old tried-and-tested methods to continue under a new head.

"Nobody would have thought such things could happen at Tata", said J. N. Gupta, a former executive at India's markets regulator and now managing director at Stakeholders Empowerment Services.

In a meeting with the senior leaders of Tata companies, Ratan Tata said the group will "evaluate and continue to undertake those (ongoing initiatives) that are required to", exacerbating concerns among investors about the continuity of Mistry's plans for the steel major.

In its case, FIA said that the Tata-AirAsia agreement violated the Directorate General of Civil Aviation (DGCA) rules and Foreign Direct Investment (FDI) policy.

Like this: