Cyrus has a construction mindset, not a constructive one: C Sivasankaran

Siva Group Chairman Sivasankaran also said he had lost around Rs 3,000 crore over his investment in TTSL

Serial entrepreneur and founder of telecom company Aircel Chinnakannan Sivasankaran says former Tata Sons chairman Cyrus Mistry has unnecessarily dragged him into a controversy by citing a loan provided by Tata Capital to one of his group companies. Edited excerpts from an interview with T E Narasimhan and Gireesh Babu:

What is your reaction to Cyrus Mistry’s reference to your group in his letter to the Tata Sons board?

Tata Capital lent us Rs 200 crore in two tranches but he (Mistry) did not provide the full facts. These loans were provided against the shares I held in Tata Teleservices. The number of shares pledged was 62.25 million, which represent a 9.5 per cent stake in Tata Teleservices. The valuation of the shares in 2012 was Rs 740 crore.

I did not repay the loan because we filed for bankruptcy. Tata Capital wrote off the debt and kept the shares. We have no issues and do not find any fault with Tata Capital. It was a business decision, so there is no controversy for me.

Then why did Mistry drag you into this?

He thinks I have a proximity to Ratan Tata, so he raised this.

How much did you lose on your investment in Tata Teleservices?

At NTT DoCoMo’s price, I stand to lose around Rs 3,000 crore, including the capital and the interest.

Have you invested in any other Tata group firm?

No.

What is your view on Cyrus Mistry?

Mistry has a construction mindset, not a constructive mindset. I have respect for Mistry, for what he is, but he knew all the problems before becoming the chairman.  He should have taken steps to solve the problems.

Also, he should have practised a style of management using the best talent in the industry rather than building a coterie with no experience of handling Tata companies. If Mistry was fired for non-performance, he should have fired other people in the group who did not perform.