Tata Group companies deny Mistry allegations in annual reports

MUMBAI: Tata Group companies Tata Steel, Tata Motors, Tata Power and Indian Hotels Company have all opted to utilise their annual reports to deny the various allegations made by former group chairman Cyrus Mistry and proclaim they maintain highest corporate governance standards.
Mistry, who was ousted as chairman of Tata Sons in October last year, had alleged mismanagement, poor business decisions, falling corporate governance standards, violation of insider trading norms, and gagging of independent directors at the Tata Group, shocking the investor community and corporate India alike.
The ouster and allegations had led to a fall in share price of various Tata companies.
Tata Steel used its annual report for the last financial year to refute Mistry’s allegation that former chairman Ratan Tata decided to buy UK-based Corus for more than $12 billion despite reservations raised by some board members and senior executives.

“The board wishes to place on record that the acquisition and subsequent financing arrangement were undertaken following due governance processes under the supervision and oversight of the board,” the company said in the report. “The acquisition of Corus was based on long-term strategy of the company to pursue growth through international expansion and enhance the portfolio with value added products," it said.
Tata Motors has also denied all the allegations made by Mistry on the subject of investment in Nano car project and its accounting practices in its annual report. Mistry had alleged that Ratan Tata’s emotional attachment to the loss-making Nano car project has kept the project alive.
The company said it has filed detailed explanations with the regulators on the allegations and reiterated that it complied with all governance standards.