Now Mismanagement Encircles Tata Group

The US $103 billion Tata group is time and again covering the breaking news on every news channel. The recent breaking news is the defamation case. Media has given the title “mismanagement company” to the TATA Groups. Let us see the various situations kept in front of the Tata group:

• Defamation Case Against Tata Group:

The industrialist Nusli N Wadia has filed a criminal defamation case against the Tata Sons. This case is filed against the chairman Ratan Tata and some of its directors. A total of 12 persons are involved in this case.  Let me tell you about Wadia also. Wadia is an accuse of taking theside of the ousted chairman of the Tata Group Cyrus P Mistry, during all the Cyrus Mistry issues going on.

Wadia has also filed a same defamation case against Tata Group in Bombay High Court previously. In that case, he sought Rs. 3000 crore for the damages. For now, we do not know the result of that case. But we do know that this time he wants to take the offense under section 500 of IPC for the defamation. And also Section 109 and Section 34 for abatement and criminal act with common intention respectively.

• Mismanagement started With The Removal Of Cyrus Mistry:

Since the removal of Cyrus Mistry, this company is under the cloud of mismanagement. A two hour long animated hearing was conducted on Thursday. The National  Company Law Tribunal (NCLT) conducted this hearing. Cyrus Mistry did not press for any interim relief against the Tata Sons. The complaint, filed against the company, is on the basis of oppression and mismanagement.

A Sundaram, a Chennai based counsel of the Cyrus Investments went through the petition. He made the submission for an approximately 90 minutes. People believes that the primary reason for the removal of Cyrus Mistry was just because he wanted to investigate some of the improprieties. There are some of the companies that do not follow the trading norms. Cyrus claims that some of the price sensitive issues is shared with these companies. Some of the price sensitive issues was shared with such parties that do not follow the trading norms also.

Tata Groups is one of those companies that also represents India on an international level. Hence, the case against this company not only concerns just about the Tatas, but it has also put the entire reputation of our country at stake. Cyrus Mistry had moved to the NCLT just a day after his resignation. The judicial panel member of this case also said that this issue will have international implications as well.