Tata Sons tonight refuted charges of breakdown of governance levelled by Cyrus P Mistry, saying it was the ousted chairman who has been violating such guidelines.
"The same Corporate Governance Guidelines, Mr. Mistry's office is referring to, prescribes that a Tata employee must step down from the Boards of Tata companies, after he ceases to be a Tata employee.
"After being replaced as Chairman of Tata Sons, Mr Mistry ceases to be a Tata employee. It is he who is violating the Guidelines that he himself propounded, and not Tata," a Tata Sons spokesperson said.
The response was to Mistry's office issuing a statement saying the ousted chairman was fighting to protect the conglomerate from "capricious" decision-making by Interim Chairman Ratan Tata.
Refuting remarks that he was trying to take over control over all Tata Group activities, Mistry's office alleged that those individuals were seeking to procure unpublished price sensitive information from listed group companies, breaking down governance.
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Reacting to the Tata Sons' statement, a source close to Mistry said: "First failure of governance is the failure of Mr Tata to follow the articles, formation of a committee to remove the chairman."
He hasn't ceased to be a Tata employee, the source added.
