Veteran industrialist Nusli Wadia, who is an independent director on board of several Tata companies, has again written a letter to shareholders of Tata Motors, alleging governance lapses at the commercial vehicle maker and also hinted at possible violation of key corporate norms.
This is the second time that Wadia is writing such a letter, after having shared similar views with shareholders of Tata Steel.
Tata Sons has called for EGMs to remove Wadia as director from the boards of Tata Steel and Tata Motors.
Focussing on the Nano, a pet project of group patriarch Ratan Tata, Wadia said that a delay in the closure of the Nano project, a loss making venture for Tata Motors, is a serious drain on the finances of Tata Motors.
“Over the years I have as an independent director expressed my views and differed with several proposals during the time of Mr Ratan Tata’s chairmanship. The Nano, initially a car conceived to sell at Rs 1 lakh was launched in 2008, has proved to be a serious drain on the financial resources of Tata Motors. Even at a price of Rs 2.25 lakhs, the car neither sells nor is viable. After its commercial failure which became evident not too long after its launch, I differed strongly in its continued operations and funding. Huge losses have been incurred over the years… The investment and losses on NANO have been in thousands of crores rupees. Concerns have been raised not only by me but by several others regarding the continuing operation,” says Wadia in his 13-page letter.