Home World Business Two Mistry firms’ counsel submit documents to NCLT to prove mismanagement

Two Mistry firms’ counsel submit documents to NCLT to prove mismanagement

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They related to companies including Tata Motors, Tata Teleservices, and Tata Power

Two family firms on Tuesday presented to the Mumbai Bench of the National Company Law Tribunal (NCLT) what they referred to as “documentary evidence” to prove “mismanagement” at Tata Sons. The was hearing a plea by Cyrus Investments and Sterling Investments, which have been fighting Tata Sons since Cyrus Mistry’s removal as chairman of the holding firm in October 2016. The firms’ counsel presented to the Bench copies of emails, letters, etc to prove the charges. They related to including Tata Motors, Tata Teleservices, and He argued the board in October 2016 had unanimously decided to discontinue the Nano project. The continuance of the project “for emotional reasons post the removal of Cyrus is an example of ongoing mismanagement of and through it of Tata Sons”. Through his submissions, Sundaram said shares of Ltd were allotted to Mauritius-based businessman C Sivasankaran at a discounted value with benefits aggregating more than Rs 10 billion owing to his friendship with Ratan Tata, former chairman of Tata Sons.

In a Tata Sons board meeting held in September 2016, Cyrus introduced a proposal to litigate against the to recover Rs 6.94 billion. Agreement with this decision was unanimous, Sundaram argued. Mehli Mistry, another close associate of Ratan Tata, secured lucrative long-term contracts at the expense of The documents on record capture the manner in which the interests of Tata Sons were compromised through awards of long-term lucrative contracts not conforming to industry standards, he added, pointing out that several such deals were awarded despite Mehli not having any experience in the field concerned. The benefits accruing to Mehli fell by more than half when the contracts were re-negotiated, resulting in a saving of more than Rs 2 billion per annum for Tata Power, he argued.

First Published: Wed, January 10 2018. 01:11 IST

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