Govt to steer clear of Tata-Mistry tussle

Ousted Tata Group chairman Cyrus Mistry has sought an appointment with Finance Minister Arun Jaitley, who also heads the ministry of corporate affairs. However, the government has decided to stay clear, for now, of the boardroom tussle in India's largest conglomerate.

Mistry, first non-family chairman of Tata Sons, holding company of the Tata Group,  was unceremoniously removed from his position last month.

The finance minister has decided not to meet either side, as the government does not want to be seen getting embroiled in the Tata Group turmoil, a senior official said.

Arjun Meghwal, Jaitley’s deputy minister, said the Centre was in no position to intervene or interfere at the leadership tussle in Tata Sons.

“The government is keeping an eye on the situation. These (Tata companies) are big companies, a number of them are listed, and they have an impact on the overall economic situation. However, there is no formal probe going on. The regulator cannot take any action until there is a complaint from one of the stakeholders involved,” Meghwal said. “Sebi and other agencies are also keeping a vigil, but so far, nothing has been referred to the ministry of corporate affairs.”

Ratan Tata, Mistry’s predecessor and now interim replacement, has so far not sought an appointment with Jaitley. 

The official said ministers are unlikely to meet either side till the matter reaches the National Company Law Tribunal or any other judicial forum. 

Mistry has accused Tata Sons of cornering him into being a "lame-duck" chairman in the near four-year tenure and also hiding $18 billion of potential write-downs across five group firms. Also, alleging financial issues at the various companies.

His family firm, Shapoorji Pallonji Group, has 18.4 per cent in Tata Sons. As much as 66 per cent of the shares in Tata Sons are held by philanthropic trusts endowed by members of the Tata family.