Top member of Tata Trust reveals real reasons why Cyrus Mistry was fired

Days after Cyrus Mistry was removed as the Chairman of Tata Sons, a trustee of low-key charitable trusts that own Tata Group broke his silence on the board’s decision.

VR Mehta, who is a member of Sir Dorabji Tata Trust and other group of charities, said Tata Group's sagging financials was the prime reason behind removal of Cyrus Mistry.

Mehta, in an interview to NDTV, said under Mistry’s leadership, the entire Tata Group was dependent on only two companies - Tata Consultancy Services and JLR (Jaguar Land Rover).

Mehta said downsizing of the philanthropic activities of the trusts was unacceptable to them.

He said Tata Group’s ethos was getting diverged under Mistry's watch, specifically the legal battle in which the Tata's found themselves against their telecom partner, DoCoMo.

It is a battle the Tatas eventually lost, and now face a hefty 1.2 billion dollar penalty.

"It (the DoCoMo case) doesn't fit with the philosophy and ethos of Tatas. Issues could have been dealt with more finesse,” Mehta told NDTV.

"After the regime changed, Mr (Ratan) Tata remained as the Chairman of the Trusts and Mr Mistry the Chairman of Tata Sons. There was no link (between the Trust and Tata Sons). Mr Tata and Mr Mistry used to meet and talk but somehow the concerns (of the Trusts) did not get adequately addressed," Mehta told NDTV.

(Image: Reuters)