Tata, Mistry meet PM, separately

While the interim chairman talked about Tata group's plans and investor-related issues, the former chairman raised concerns over the manner of his ouster, say sources

Prime Minister Narendra Modi is learnt to have met Cyrus Mistry, the ousted Tata Sons chairman, and Ratan Tata, the interim chief of the group, amidst one of the biggest battles in corporate India. This is in spite of ministers and bureaucrats in the government maintaining that they are watching the Tata group battle from a distance.

Mistry got to meet the PM just a day after he was replaced as the chairman. On Tuesday, he flew to the capital in a personal jet owned by the Shapoorji Pallonji Group, a source said. He flew back to Mumbai the same day after meeting Modi. In his conversation with the PM, Mistry is believed to have raised concerns over the manner in which he was replaced.

Three days later, on Friday, Tata reached the capital in his own jet to meet the PM. A source said the PM and Tata may not have discussed the top-level change in great detail. According to sources, the two spoke about the plans of the Tata group and investor-related issues. Tata had written to the PM, informing him about the leadership change soon after Monday’s board meeting that replaced Mistry from the top post.

Tata and Modi share a cordial relationship. When Modi was chief minister of Gujarat, Tata had shifted the Nano plant from Singur in West Bengal to Sanand. The Sanand plant was inaugurated by Modi in 2010. Tata has often expressed his indebtedness to Modi for giving land in Gujarat for the Nano project.

Officials in the Prime Minister’s Office (PMO) refused to confirm these meetings.

Mistry had in a letter to the board earlier this week said he was made a lame duck chairman and that the $103-billion group faced around $18-billion write- downs, while alleging that there was a total lack of corporate governance in the organisation. Although he hasn’t moved court yet, sources said that a court battle could follow. If Mistry decides to move court, the case could be around interpretation of what constitutes compliance in the article of association. While a chairman is chosen through a selection committee, removal should also be done through a similar panel, according to people exploring legal action against the Tatas. Mistry was replaced earlier this week through voting at a board meeting.

The Tata group on Thursday reacted to Mistry’s letter, saying his charges were “absurd” and “unforgivable” but stopped short of making a point by point rebuttal. Tatas may get into the details of the charges made by Mistry at “an appropriate time” and at “an appropriate forum”.