Tata Sons asks group firms to cut all ties with Mistry's group
17 August 2017
The board of Tata Sons, chaired by N Chandrasekaran, has ordered its group companies to sever all business ties with Cyrus and Shapoor Mistry's Shapoorji Pallonji Group, says a newspaper report.
A report in The Economic Times today cited a letter sent by a Tata Sons official to the group companies, including Tata Power & Co Ltd, Tata Chemicals Ltd, Tata Motors Ltd and Trent Ltd, to this effect.
Almost 50 companies of the Shapoorji Pallonji Group will be affected by the Tata Sons board decision taken on 9 August. All Tata Group companies are said to be acting on the Tata Sons directive, which they received on 14 August, the ET report said.
''As the promoter and principal shareholder of your company and as the custodian of the 'Tata' brand, Tata Sons does not support any businesses dealing in any form, whether directly or indirectly, through contracts or subcontracting arrangements,'' said the directive signed by F N Subedar, chief operating officer of Tata Sons.
A Tata Sons spokesperson did not immediately respond to a call seeking comment.
Cyrus Mistry, the ousted chairman of Tata Sons, had asked all the Tata group CEOs as early as October 2013 to cease all business relations with his father's Shapoorji Pallonji Group to ''avoid any conflict of interest charges against him later'', Mint cited a person aware of the matter as saying. ''What is left now are very small, insignificant businesses. So I don't know what one should make of this,'' he said.