Tata Global Beverages Ltd (TGBL), which co-owns and runs Starbucks coffee stores across India, said on Tuesday the board of directors voted to remove Cyrus Mistry as chairman and appoint Tata veteran Harish Bhat in his place.
Seven out of 10 directors voted for Mistry’s ouster, making Tata Global Beverages the first company board to vote against Mistry, who was ousted as chairman of holding company Tata Sons last month.
This is the second listed firm of the $103 billion Tata Group that Mistry has been removed from, after Tata Consultancy Services.
Mistry said the decision by the TGBL board was “inaccurate and illegal.”
“The Tatas continue to demonstrate the lack of respect for due process of law,” a statement from Mistry’s office said.
The statement called the removal a “repeat of exactly the same illegal acts done by Tata Sons Ltd on October 24”
The boardroom battle for control of the Tata Group has turned into a nasty fight, with Mistry levelling serious allegations of wrong investments made by Tata Sons at the behest of now interim chairman Ratan Tata, among other accusations.
Mistry continues to be chairman of some group companies, including Tata Motors.
In response, Tata Sons, the group’s holding company, has issued notices for shareholders’ meeting in at least five companies -- Indian Hotels, Tata Steel, Tata Motors, Tata Chemicals and Tata Consultancy services -- seeking Mistry’s removal from their boards.
However, the independent directors of Indian Hotels publicly supported Mistry’s leadership ahead of the company’s board meeting last week.
(with inputs from Reuters and PTI)