Former chairman of Tata Sons Cyrus Mistry is hitting back at the company after he was sacked last October 24. The Enforcement Directorate (ED) will look into the allegations that Mistry is saying.
According to the Straight Times, Mistry has noted in his email to the Tata board after his sacking that the company had "grown at 31 percent compounded per annum." This achievement has improved the company's balance sheet.
Mistry's email, following his sacking, has shown that he is not going down without a fight. But he has yet to reveal what will be his next step.
InGovern Research Services founder Shriram Subramanian said that it is up to Mistry now what he will do next. "It all depends on Mistry, whether he wants to be acrimonious or amicable," he said.
Reports in media have indicated that Ratan Tata is looking for a way to buy the 18.5 percent share of Pallonji Shapoorji Mistry, Cyrus Mistry's father, in Tata Sons. This shows that how deep of a fallout has happened between the two business families.
Meanwhile, the ED will look into Mistry's allegations related to the mismanagement of the group's aviation ventures, according to the Business-Standard. Mistry accused Tata of thwarting his attempts to restructure the $104 billion conglomerate.
Mistry said in his email that he was opposed to Tata's partnerships with Singapore Airlines and Malaysia's AirAsia Bhd. Mistry was opposed to the partnership with AirAsia due to the fraudulent transactions of "220 million rupees ($3.29 million) that involve "non-existent parties."
Mistry's allegations have prepared the ground for the ED to examine the case. If the ED will indeed conduct an investigation, it would come amidst the investigation that India's capital markets regulator is doing to the company due to Mistry's allegations related to violations of corporate governance rules at Tata.