Nusli Wadia in the fray

The tussle between the two Parsi business titans Ratan Tata and Cyrus Mistry has become a triangle with the addition of industrialist and chairman of the Wadia Group Nusli Wadia in the fray. "Wadia-Tata row threatens to cast shadow on Parsi biz (business) ties,” read the headline of an article in the Hindustan Times of November 23, 2016, while Mint of the same date carried a half-page story "Wadia and Tata: what went wrong” with a sidepiece "Nusli Wadia now warns Tata Sons of legal action.”
Wadia, who serves on the boards of Tata Chemicals, Tata Steel and Tata Motors, first supported ousted Tata Sons (TS) chairman Mistry in the Tata Chemicals’ board meeting on November 10, thereby earning Tata’s ire. A notice issued by Farokh Subedar, chief operating officer and company secretary of TS dated November 11 sought the removal of both Wadia and Mistry from the boards of all three companies. Wadia was "acting in concert with Mistry and against the interests of the group, despite being an independent director on the boards of certain Tata group of companies,” according to the notice quoted by the Business Standard (BS) of November 14.

From left: Ratan Tata, Cyrus Mistry and Nusli Wadia

Wadia has threatened civil and criminal action against TS in response to the notices for his removal. He has called allegations against him by TS "baseless, false, defamatory and libelous,” and alleges that they were made with the intention of harming his reputation, according to The Economic Times (ET) of November 23. Stating that TS and its directors were pursuing "a personal vendetta” against him, Wadia was quoted in the report that the notice seeking his removal from Tata Chemicals was "a reaction to the fact that independent directors refused to accept an unsigned statement tabled and read by Bhaskar Bhat” who is a non executive, non independent director of the company, asking for the removal of the chairman Mistry. Bhat resigned from Tata Chemicals on November 11.
Wadia, reportedly the godson of J. R. D. Tata who chaired the Group from 1938 to 1991, was also once considered a possible heir at the holding company of the house of Tatas. The Mint report stated that Wadia had stood by Ratan when the latter took over as chairman of TS in 1991 and "had to deal with entrenched satraps” such as Russi Mody of Tata Steel and Darbari Seth of Tata Chemicals.
Meanwhile, Mehli Mistry, a cousin of Cyrus, (their mothers are sisters), who is understood to be close to Ratan Tata, interim chairman of the business house, told ET on November 21 that he "didn’t have a role in Cyrus’ removal” and that he does not and "never did have any such power or authority.” A person "close to Tata” has refuted any suggestion that Mehli may have had a role in Cyrus’ ouster from the Tata empire, the report states.
M. Pallonji, the business house that Mehli has a 49% stake in, controls three subsidiaries namely Pallonji Leasing, M. Pallonji Ventures and Pallonji Logistics, according to a report in the BS dated November 21. The house owns significant minority stakes in Pallonji Shipping and Pallonji Logistics and small quantities of shares in Tata group listed firms.