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Cyrus Mistry resigns from all Tata companies, vows to fight on

Cyrus is not conceding defeat in this nasty and very public corporate war, but is likely to instead shift the battleground to either at the door of the corporate regulators or the legal courts

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In a major change in course for Cyrus Mistry-Ratan Tata feud, the ousted head of the Tata empire on Monday resigned from the board of six listed group companies like Tata Motors, Tata Steel, Indian Hotels and Tata Chemicals ahead of the shareholders' meetings where he would have been defeated by Tata Sons' shareholding might.

Cyrus is not conceding defeat in this nasty and very public corporate war, but is likely to instead shift the battleground to either at the door of the corporate regulators or the legal courts.
"I have decided to shift from the forum of the EGMs to a larger platform and also one where the rule of law and equity is upheld," Cyrus said in a statement which was also video-taped and played out.

Cyrus reading out the statement in front of a camera was perhaps meant to impart gravitas and make it stand out amid numerous other statements issued by both the camps and fed to the media earlier.

But it also signifies Mistry's growing frustration at his defeats at the EGMs of the Tata Group companies conducted so far and also at his failure to make Ratan Tata and his camp respond in the way he would have preferred to his plethora of allegations of impropriety and corporate governance breakdown.

"It has now been eight weeks, waiting for concrete reasons to be provided by Mr. Ratan Tata for the illegal coup he staged on October 24. Nothing cogent has been forthcoming. Having reflected deeply, I think it is time to shift gears, up the momentum, and be more incisive in securing the best interests of the Tata Group," Cyrus said in the statement.

Beyond his letter, Cyrus told reporters that the EGMs were turning out to be "destructive" due to cohesive behaviour of group majority owner Tata Sons and indicated that he has some legal strategies in place, which he couldn't disclose at this point.

Elsewhere in his statement, Cyrus repeated some of this allegations mostly directed at Ratan Tata, particularly his alleged favour to C Sivasankaran.

"I had raised the issue of recovery of large sums of money due from one Sivasankaran to Tata Sons in the September 15 Board meeting, securing approval to litigate. Within a few days, Tata Sons received a legal notice instead – clearly indicating a leak from Tata Sons. The history of questionable dealings between the Tata Group and him is a matter of record since he proudly flaunts his close personal bond with Ratan Tata," Cyrus said.

Mistry also said he had tabled a forensic report, containing findings of fraud and wrong-doing at Air Asia India, for the October board meeting, but no discussion happened.

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