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Ratan Tata well aware of DoCoMo decisions: Cyrus Mistry

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Mumbai, 01 Nov 2016 : Amid allegations that the manner in which the Tatas’ break-up with DoCoMo was handled by Cyrus Mistry was among the reasons that led to his ouster as Tata Sons chairman, his office on Tuesday said that all decisions were in concurrence with Ratan Tata and the board.

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“To begin with, the agreement with DoCoMo had been executed before Mistry became executive chairman of the Tata Group,” said an eight-point statement from the office of Cyrus Mistry.

“Insinuations that DoCoMo issue was handled under the watch of Mistry in a manner inconsistent with Tata culture and values are baseless. Suggestion that Ratan Tata and trustees would not have approved of the manner in which the litigation was conducted is contrary to what transpired.”

This was in reference to the $1.17 billion compensation sought by DoCoMo for breach of contract.

The statement went on to add that the Tatas requested DoCoMo to join them in seeking the approval of the Reserve Bank of India, but the Japanese entity did not agree. While Tatas applied for RBI approval, DoCoMo initiated arbitration since such a nod was not forthcoming.

“The award was passed in favour of DoCoMo and against the Tatas. The Tatas under Mistry did not challenge the award in the UK. On the contrary, RBI was approached once again by the Tatas for permission to pay the amount awarded. RBI again refused permission,” the statement said.

Tatas also deposited Rs.8,000 crore in Delhi High Court where DoCoMo sought enforcement of the award.

“Throughout the above process, Ratan Tata and N.A. Soonawala, Trustee, were kept informed and they participated in separate meetings held with Mistry,” said the statement, seeking to clearly state that the top management was kept in the loop.

“They also participated in the meeting with the legal counsel (a trustee of Dorabji Tata Trust who represented Tatas in the litigation). At all times Ratan Tata and Soonawala concurred and approved the course of action adopted by Tatas and as advised by legal counsel,” it said.

“All decisions were taken with the unanimous approval of the Tata Sons Board. In fact, all decisions were collective decisions and the actions were consistent with every such collective decision,” it added.

“In light of the above facts, to suggest that Mr. Mistry acted on his own, or contrary to ‘Tata values’ or without the knowledge and/or concurrence of Ratan Tata and Soonawala is as false as it is mischievous.”

Japan’s NTT DoCoMo had acquired 26.5 per cent equity in Tata Teleservices for approximately $2.5 billion in March 2009. In July 2014, DoCoMo told Tata Sons it was opting out. As per the terms of the deal, it wanted the higher of either half the amount invested or fair market price.

But in February 2015, the Reserve Bank turned down Tata’s request to compensate DoCoMo, after which the Japanese company moved the London Court of International Arbitration. The court directed the Tatas to pay DoCoMo $1.17 billion in compensation.

The payment was not made, Tatas deposited $1.17 billion in a Delhi court, awaiting directions.

Tata Sons removed Mistry, 48, as chairman of Tata Sons last month saying he lost the confidence of the board due to several factors and that the trustees were increasingly concerned with the growing trust deficit. Ratan Tata, who had made room for Mistry four years ago was reinstated as the chair in an interim capacity.

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India

Gujarat was first state to adopt policy for solar power: PM Modi

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New Delhi, 24 Oct : Prime Minister Narendra Modi on Saturday inaugurated three projects in Gujarat including the Kisan Sarvodaya Scheme, under which the farmers will get electricity during the day for the irrigation purpose and said that Gujarat was first state to adopt policy for solar power generation.

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Mehbooba Mufti said she would not raise any flag other than Kashmir

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Srinagar, 23 Oct. : Former Jammu and Kashmir Chief Minister and Peoples Democratic Party President Mehbooba Mufti, who was released after nearly 14 months of detention, has started political activities. Mehbooba, who came to address a press conference for the first time after so many months, has announced that her party will unite in bringing Jammu and Kashmir back to the same status (before Article 370 is removed).

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Indian economy to contract by 10.3% in 2020; may show 8.8% growth in 2021: IMF

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New Delhi, 13 Oct. : The Indian economy, severely hit by the coronavirus pandemic, is projected to contract by a massive 10.3 percent this year, the International Monetary Fund said on Tuesday.

However, India is likely to bounce back with an impressive 8.8 percent growth rate in 2021, thus regaining the position of the fastest growing emerging economy, surpassing China’s projected growth rate of 8.2 percent, the IMF said in its latest ‘World Economic Outlook’ report.

Released ahead of the annual meetings of the IMF and the World Bank, the report said global growth would contract by 4.4 percent this year and bounce back to 5.2 percent in 2021.

America’s economy is projected to contract by 5.8 percent in 2020 and grow by 3.9 percent the next year, the IMF said.

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