Tata Sons sues Mistry for alleged breach of confidentiality

December 27, 2016

New Delhi, Dec 27: Tata Sons today slapped a legal notice on its ousted chairman Cyrus P Mistry for alleged breach of confidentiality by making public sensitive company documents including minutes of board meetings, financial information and data.mistry1

It termed attaching dozens of confidential and sensitive company documents with the petition filed by his family investment firms before the National Company Law Tribunal against his removal, as "reckless failure" in discharging of "fiduciary, legal and contractual duties" by Mistry.

Tata Sons in the notice served through law firm, Shardul Amarchand Mangaldas, said "without there being any requirement to do so" the Mistry family firms "deliberately included in petition, as exhibits, confidential data, business strategies, financial information pertaining to the business affairs of Tata Sons Ltd, Tata Group Companies and Joint ventures (all such material being 'Confidential & Sensitive Information')."

"By passing on Confidential & Sensitive Information accessed by you in your capacity as a Director of Tata Sons to companies owned and controlled by your family... you have acted in complete violation of your confidentiality undertaking to Tata Sons, your fiduciary duties towards Tata Sons and your obligations under the Tata Code of Conduct," it said.

Stating that it intends to exercise all legal rights and pursue all remedies available under law, the petition asked Mistry to "cease and desist" from sharing confidential and sensitive information.

Also, it wanted any document or parts which are unrelated to his petition before NCLT be suitably redacted.

Mistry's actions have exposed Tata Sons to potential claims from third parties for breach of confidentiality, the petition said adding Tata Sons will make him liable for all such claims.

It alleged that Mistry, who was unceremoniously ousted as Chairman of Tata Sons on October 24 and subsequently forced to resign as director from key operating companies, had not only breached his legal duties as a director but also acted recklessly with the sole intent to cause harm and loss to Tata Sons.

Terming Mistry's actions and omissions having resulting in a criminal breach of trust, the notice said making public confidential information was done with the sole intent to cause harm and loss to Tata Sons.

The petition said his actions and omissions by itself were act of mismanagement. "Such deliberate acts and omissions on your part, clearly establishes the fact that contrary to all your claims, you are no well-wisher of Tata Sons and the Tata Group Companies. The lack of JN Tata ethos in your conduct, which you espouse often, is obvious," it said.

Mistry last week moved the National Company Law Tribunal seeking restrain the family scion Ratan Tata, who was made interim chairman after his ouster, from attending board meetings and appoint an administrator to manage Tata Sons - the holding company of the USD 103 billion salt-to-software Group.

"Whilst, acting through the Petitioners (Mistry family investment firms), you (Mistry) may be agitating certain legal issues against Tata Sons and wanted to rely on certain documents, you acted in completed breach of all legal duties and obligations that you are subject to, when you caused the Petitioners to deliberately annex entire minutes of meetings of the Board of Directors of Tata Sons, without making any effort to instructing the Petitioners to redact portions of the minutes... which have no relevance or are wholly unrelated to the matters asserted in the petition," Tata Sons said.

The petitioners - Cyrus Investment Pvt Ltd and Sterling Investment Pvt Ltd - are companies owned and controlled by Mistry family and he had substantial shareholding in them, the petition said.

"By providing Confidential & Sensitive Information to the Petitioner and further, by failing to ensure that such Confidential & Sensitive Information which was unrelated to the Petition was not suitably redacted, you have failed in charge of your legal duties as a Director of Tata Sons which are imposed on you under law, including the Companies Act, 2013," it said.

Mistry deliberately used the Confidential and Sensitive Information entrusted with him "to cause wrongful loss" to Tata Sons and Tata Group companies, the petition alleged.

"Such reckless failure on your part in discharging your fiduciary, legal and contractual duties has caused irreparable harm and damage to Tata Sons and Tata Group," it said.

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News Network
February 19,2020

New Delhi, Feb 19: The UIDAI on Tuesday said its Hyderabad office has sent notices to 127 people for allegedly obtaining Aadhaar numbers on "false pretences" but asserted these have nothing to do with citizenship.

The notices were issued after reports from the police, the Unique Identification Authority of India (UIDAI) said.

"Aadhaar is not a document of citizenship and UIDAI has been mandated under the Aadhaar Act to ascertain residency of a person in India for 182 days prior to applying for Aadhaar," the nodal body, which issues the 12-digit biometric ID, said in a statement.

The Supreme Court, in its landmark decision, has directed the UIDAI not to issue Aadhaar to illegal immigrants, it said.

"It may be noted that the regional office Hyderabad received reports from the state police that 127 people have obtained Aadhaar on false pretences, as in their preliminary enquiry they were found illegal immigrants who were not qualified to obtain an Aadhaar number," the UIDAI said.

As per the Aadhaar Act, such Aadhaar numbers are liable to be cancelled.

"Therefore, the regional office Hyderabad has sent notices to them to appear in person and to substantiate their claims for getting an Aadhaar number," it said.

The UIDAI emphasised that these notices have "nothing to do with citizenship and cancellation of Aadhaar number is in no way related to the nationality of any resident".

In case it is found and proved that any of them obtained Aadhaar by submitting false documents or through false pretences, their Aadhaar is liable to be cancelled or suspended depending on the severity of the transgression, UIDAI said.

"Severe errors like forged documents, etc., will lead to appropriate actions, including suspending /cancelling the Aadhaar," it cautioned.

"Sometimes it becomes necessary to cancel the Aadhaar number when it is found that a resident has obtained it by submitting false biometrics or documents. It is a routine quality improvement process that the UIDAI takes up regularly," the authority said.

The 127 people have been asked to appear before the UIDAI deputy director in Hyderabad for a personal hearing on February 20.

Additional time has been given to allow them to collect the requisite documents, "Since it may take them some more time to collect the original documents that they had submitted for obtaining Aadhaar, as informed by the state police, the UIDAI has postponed the personal hearing to May 2020," it added.

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News Network
March 27,2020

Mumbai, Mar 27: The Reserve Bank of India (RBI) on Friday lowered the key repo rate by 75 basis points to 4.4 per cent in a bid to arrest the economic slowdown amid coronavirus (COVID-19) outbreak.
The reverse repo rate now stands at 4 per cent, down by 90 basis points, said RBI Governor Shaktikanta Das adding this has been done to make it unattractive for banks to passively deposit funds with the central bank and instead lend it to the productive sectors.
The six-member monetary policy committee (MPC) met on March 24, 25 and 27 and voted 4:2 in favour of the repo rate reduction. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth and mitigate the impact of COVID-19 on the economy while ensuring that inflation remains within the target.
"The need of the hour is to shield the economy from the pandemic," said Das. "We need to mitigate the impact of coronavirus, revive economic growth and provide financial stability."
Repo rate is the rate at which a country's central bank lends money to commercial banks, and the reverse repo rate is the rate at which it borrows from them.
The RBI Governor further said that the economic growth and inflation projection will be highly contingent depending on the duration, spread and intensity of the pandemic.
"Global economic activity has come to a near standstill as COVID-19 related lockdowns and social distancing are imposed across a widening swathe of affected countries. Expectations of a shallow recovery in 2020 from 2019's decade low in global growth have been dashed," said Das.
"The outlook is now heavily contingent upon the intensity, spread and duration of the pandemic. There is a rising probability that large parts of the global economy will slip into recession," he said.
However, the RBI has injected liquidity of Rs 2.8 lakh crore via various instruments equal to 1.4 per cent of GDP. "Along with today's measures, liquidity measures equal to 3.2 per cent of GDP. The RBI will take continuous measures to ensure liquidity in the system."
The RBI governor has said that all banking institutions can offer a three-month moratorium on all loans for a period of three months. The RBI has also allowed banks to restructure the working capital cycle for companies without worrying that these will have to be classified as a non-performing asset (NPA).
The three-month moratorium will permit banks to avoid a large onset of NPAs during the 21-day lockdown and keep their books healthy.
Das said banks and other financial institutions should do all they can to keep credit flowing to economic agents facing financial stress on account of the isolation that the virus has imposed.
"Market participants should work with regulators like the RBI and the Securities and Exchange Board of India (SEBI) to ensure the orderly functioning of markets in their role of price discovery and financial intermediation," he said.

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News Network
May 10,2020

Kochi, May 10: A total of 698 people who were evacuated from Maldives on INS Jalashwa, arrived here on Sunday around 9.30am (India time), said the Cochin Port officials. This operation is part of Indian Navy's 'Operation Samudra Setu'.

Another 121 from Lakshadweep also arrived at Mattanchery, near here. on MV Arabian Sea - a passenger/cargo ship sailing under the Indian Flag.

Samudrika Cruise Terminal has been opened up for handling the expatriates and Port has taken up necessary refurbishments consistent with the medical protocols.

The Cochin Port Trust officials said the first group of 698 persons evacuated from Maldives comprises 595 males and 103 females. Of this, 14 are children below 10 years and 19 pregnant women.

Among the 698 passengers, 440 are from Kerala, 156 from Tamil Nadu and the rest are from various states in the country.

Ernakulam district collector S. Suhas said all those from Tamil Nadu will be sent to their state in the bus.

The ship is berthed at BTP Jetty and the disembarkation procedures are being carried out at Samudrika Cruise Terminal. It will take around three hours for all the passengers to be cleared.

According to the protocols, all the Keralaites will be sent for 14 days institutional quarantine at their respective home districts.

Those who are having exemption from institutional quarantine have to be at home isolation.

Among the 121 who arrived on MV Arabian Sea from Lakshadweep include students and those Keralaites who work in the island.

The protocol for these 121 passengers is that since they have been checked there, all these people can go to their homes and be in isolation for 14 days.

The general guideline is if any one shows any symptoms of Covid-19, all such people will be directly sent to Covid hospitals, here.

The distance between Male and Kochi is 493 nautical miles and it began its voyage to Kochi on Friday evening.

INS Jalashwa is an Indian naval ship attached to the Eastern Naval Command. It was acquired from the United States and was commissioned in 2007.

INS Jalashwa has the capacity to accommodate 1000 troops, and comes equipped with extensive medical facilities, including four operation theatres, and a 12-bed ward facility.

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