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Sunday , 21 April 2019
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Tata Group to terminate all business relations with Cyrus Mistry’s Family Firms

In a significant development, Tata Group has decided to end all business relations with firms owned by Cyrus Mistry’s family. Led by its new chief, N Chandrasekaran, Tata Group will be terminating all ties with Shapoorji Pallonji group, which is the primary business owned by the family of ousted chairman Cyrus Mistry. Earlier this month, the board of Tata Sons, which owns all the major businesses in Tata Group, had asked all its firms to terminate any kind of business ties with the Shapoorji Pallonji group. However, Shapoorji Pallonji group has responded by saying that Tata Groups’ decision to terminate business ties will not have any major impact on Shapoorji Pallonji group.

The Shapoorji Pallonji group said that engineering and construction contracts during Cyrus Mistry’s tenure as Tata Sons chairman had fallen to zero. As such, the impact of cutting ties with Tata Group would be extremely insignificant in value. Corporate experts said that this is in continuation of the bitter fight that had occurred between Cyrus Mistry and Tata Sons last year. It may be recalled that Shapoorji Pallonji group holds the largest stake in Tata Sons at around 18.40 percent. However, the majority of the board was still against Cyrus Mistry, which resulted in his ouster last year from the post of chairman of Tata Sons.

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