The entire Tata Group controversy has now turned into an unsightly war. A few days back Tata Sons dismissed their chairman Cyrus Mistry from his post. After that, he hit back with a retribution on the Tata Sons Board in public and his precursor and provisional stand-in Ratan Tata in meticulous. After this news, the market of rumors become more powerful and various speculations are coming across. India newspapers and other media covered this spicy new on priority and still there are several assumptions are created by the media and experts.
What exactly happened?
In the email of 5-pages to the trustees and concerned board of Tata Trusts, Cyrus Mistry informed “faulty planning” and “dubious transfers” from the past and supposed the worth of those five businesses around $18 billion or Rs. 118,000 crores. These five businesses include Tata Motors, Tata Power Mundra, Indian Hotels, Tata Steel Europe and Tele-services.
He described them as “inheritance hotspots”, he said that between 2011 and 2015 “resources engaged in those organizations has increased from 132,000 crores to 196,000 crores, while the complete value of the whole Tata group was around Rs 174,000 crores. It happens due to several losses in interest, operational activities and capex. This news was the main priority, not just for the Indian media, but world newspapers provided an important space to this news in their newspaper.
He also raised fingers on the Ratan Tata’s dream venture Nano. He said that the car project has constantly mislaid worth, peaking at Rs 1,000 crores”. More disastrously, he said that with “no stripe of prospect to effectiveness for the Nano, any turn policy for Tata Motors requisite that manufacture of the car be “close down”. “Emotional causes only have kept back us left from this critical assessment,” he said.
He added in his statement that how Tata had, without any earlier discussion, all but enforced him to spend on the group’s combined projects with Air Asia and afterward Singapore Airlines; as then, on Tata’s “suggestion”, the managing group share company had pumped resources in numerous of the “preliminary promise”. Not limiting himself to the condemnation of deprived business choices, Cyrus Mistry throws a light above a range of economic deals. For example, he spoke of “principled concerns” over “assured dealings” in Air Asia. “Latest forensic inquiry exposed deceptive connections of around Rs 22 crore concerning non-existent parties in both Singapore and India. India newspapers spotted a special shadow on this.
Whatever the scenario is created by world newspapers and Indian media, the ugly reality is that the war of Tata Group is now on the streets. It is notable, how Cyrus Mistry and Ratan Tata finish this pointless controversy and vanish all the confusions for the betterment of the Tata Group.