The charitable trust owns 66 per cent of Tata Sons, holding entity of all companies controlled by the salt-to-software conglomerate.
In a surprise move, Tata Sons said its board has removed Cyrus Pallonji Mistry as Chairman of the conglomerate and named Ratan Tata as interim chairman for four months.
Ratan Tata had been chairman from 1991 till his retirement on December 28, 2012 and Cyrus Mistry had become the sixth chairman of the Tata Group.
Mistry will remain an independent director on the board of Tata Sons – a position he held before he became chairman. But he will have to quit as chairman of all group companies, according to the media reports.
"The Board had requested me to perform the role of the Chairman and I have agreed to do so in the interest and reassurance of the Tata group," Ratan Tata said in the letter.
"A new management structure is being put in place and a selection committee has been constituted to identify the next chairman of Tata sons," Ratan Tata added in the letter. A committee has been given four months to find the new chairman.
However, the company got a mixed response on Twitter.
Some wrote about the interim CEO Ratan Tata, who has expressed concern over growing intolerance in the country, during his address at the 199th foundation day function of Scindia School in Gwalior on 22 October.
Meanwhile, speculations are common within the industry that the move has been inspired because of the dipping revenues of the company.
The brief statement does not gives any reason for Cyrus Mistry's ouster, however sources close to the development said it was because of "performance" issues and the issue has been doing the rounds for sometime.The turnover of the group dropped to $130 billion in the current financial year from $108 billion the previous year.
While some think that Tata's controversial settlement with the Japanese telecom operator NTT Docomo was one of the major reasons why the string was finally pulled by the Board members.
Ratan Tata Writes To Group Employees On Cyrus Mistrys Ouster
New Delhi: Ratan Tata called all group employees "inheritors and custodians of the Trusts" and its "belief in making a sustainable change" in society.