In sharp escalation of boardroom battle at Tata Group, patriarch Ratan Tata-led holding entity removed Cyrus Mistry as Chairman of TCS, the conglomerate's most successful firm, and called a shareholders meet to remove him from IHCL that runs Taj hotels.
Mistry, who was ousted as Chairman of Tata Sons in a surprise move last month, however dug in his heels, rallying around independent directors of Tata Chemicals Ltd -- the second group firm after Indian Hotels Co Ltd (IHCL) where independent directors have backed him as Chairman.
Even after being removed as Chairman of Tata Sons, Mistry continues to head the group's several listed firms including Tata Motors, Tata Power, Tata Steel and Tata Chemicals.
In the absence of Tata Sons having an absolute majority stake in many of the listed group entities, it is difficult to evict Mistry, setting the stage for power struggle.
Tata Sons replaced Mistry with Ishaat Hussain as Chairman of India's largest software services firm, Tata Consultancy Services (TCS), a move seen as an attempt by Ratan Tata-led promoter group trying to tighten grip over the USD 100 billion salt-to-software conglomerate.
Tata Sons, which holds a 73.26 per cent stake in TCS, called an extraordinary general meeting of shareholders "to consider a resolution for the removal of Cyrus P Mistry as Director of the Company," the software firm said in a regulatory filing.
Mistry camp hit back calling the removal as reflection of "cloak and dagger" machinations that define "the angry strategy of the Ratan Tata camp".
"Cloak and dagger machinations with little regard to due process of law has come to define the angry strategy of the Ratan Tata camp," said a source close to Mistry said.
Mistry also got a shot in arm when independent directors of Tata Chemicals today "unanimously" backed him and the management in the conduct of the company's business.
Tata Chemicals, in which Tata Sons has 19.35 per cent stake, in a separate regulatory filing said its independent directors at a meeting today recalled and reaffirmed their earlier assessment and evaluation carried out in the year 2015 and 2016 of the Chairman, the Board, and its functioning.
Tata Sons asked IHCL, where it holds 28.01 per cent, to call an extraordinary general meeting (EGM) shareholder meet to consider removing Mistry as director of the company. Mistry is Chairman of IHCL.
It may also call shareholder meetings to vote Mistry out of some of other listed companies where he is Chairman.
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