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Tata Trustee Slaps Rs 500 Crore Defamation Suit Against Cyrus Mistry

न्यूज़ वर्ल्ड इंडिया | 0
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| July 5 , 2017 , 13:01 IST

Managing Trustee of Tata Trusts R Venkatramanan has filed a criminal defamation suit against the former chairman of Tata Sons Cyrus Mistry and his brother Shapoorji Mistry claiming a compensation of Rs 500 crore.  

The lawsuit filed with the Esplanade Metropolitan Court of Mumbai accuses Cyrus Mistry and his associates of making false and defamatory statements against Venkatramanan. The charges against Mistry have been filed under Sections 499, 500 and 501 of the Indian Penal Code.

"The court has summoned Mistry and others in the criminal defamation case filed by us, wherein we have demanded a compensation of Rs 500 crore," Parvez Memon, representative of Venkatramanan told media.

ALSO READ: Tatas Hit Out At Ousted Chairman Cyrus Mistry, Accuse Him Of Underperformance, Betrayal

Based on the defamation complaint, the court has summoned Cyrus Mistry, Shapoor Mistry and the directors of Cyrus Investments and Sterling Investments, before the court on August 24.  Appearing before the court, the accused will also have to seek bail bonds.

The lawsuit comes as the Tatas vs Mistry spat finally showed signs of dissipation which erupted after  Cyrus Mistry was ousted from his position as Chairman of Tata Sons in October 2016.

After his sudden removal, Mistry alleged that illegal transactions worth nearly Rs 22 crore had taken place under the group's aviation venture AirAsia India and accused Venkatramanan of covering up the operation. The allegations made by Mistry are still under investigation by the Enforcement Directorate.

Filing the Rs 500 crore defamation case, Parvez Memon called Mistry's claims false and baseless and claimed that Venkatramanan's dignity and reputation were worth a lot more than the wealth Mistry owns.

ALSO READ: Tata Sons Looks To Buy Out Biggest Stake Held By Cyrus Mistry

In response to the lawsuit, Mistry's office issued a statement calling the defamation case a 'proxy battle' being played by the Tatas via Venkatramanan in an attempt to 'muzzle' the legal battle that Mistry is fighting against the 'oppressive conduct and mismanagement' of the Tatas.

Holding 18.4 percent stakes in Tata Sons, Cyrus Mistry and his company had moved the Mumbai Tribunal against the Tatas for his sudden ousting but his petition was dismissed by the tribunal saying that the investment firms have insufficient shareholding to seek a legal recourse.