Tata Motors has called an extraordinary general meeting (EGM) on December 22 to seek shareholders' approval for removing Cyrus Mistry and Nusli Wadia as directors of the company.

Ousted from Tata Sons, Mistry continues as Chairman of the group firms like Tata Motors and Tata Chemicals.

Tata Motors became the first company in India to introduce liquefied natural gas-fuelled bus in Kochi recently. As it awaits a final notification from the government recognising LNG as an automotive fuel, the company sees a big market for these vehicles, especially in coastal areas with good connectivity to LNG terminals.

Speaking to Business Standard, Ajit Jindal, head, engineering, commercial vehicles, passengers, said LNG could be used as an alternative fuel to diesel.

The stock of Tata Motors plummeted nearly 10% on Tuesday after the auto major’s second quarterly profit fell short of Street expectations.

The Tata Motors stock eroded Rs15,057.51 crore from its market valuation. It slumped 9.88% to end at R457.25 on BSE. During the day, it tanked 10.99% to R451.60.

Tata Motors on Friday reported a consolidated net profit of Rs 848 crore for the quarter ended September 30, riding on strong sales of its British arm Jaguar Land Rover across various overseas markets. The automaker had reported a loss of Rs 1,740 crore for the corresponding quarter of the previous fiscal.

Consolidated revenues for the quarter increased 6.94% y-o-y to Rs 67,000 crore owing to the good performance by JLR and a recovery in the volumes of the passenger vehicles business on a standalone business.

Taking a cue from Tata Consultancy Services and Indian Hotels Company Ltd, Tata Motors has convened an extra ordinary general meeting of shareholders to sack its chairman Cyrus Mistry and one of its senior independent directors, Nusli Wadia.

In a notice to the stock exchanges, Tata Motors said it has received a notice from Tata Sons, with 26.51% stake for convening an Extraordinary General Meeting of the company for considering and passing resolutions for the removal of Cyrus P Mistry and Nusli N Wadia, directors of the company under Section 169 of the Companies Act.

Market regulator Securities and Exchange Board of India (Sebi) has directed stock exchanges to look into the disclosures made by listed Tata group companies, particularly Tata Motors and Tata Steel to ensure compliance with the listing regulations.

The move comes following Cyrus Mistry's allegations about losses incurred by the Tata group due to various projects like Nano car, European steel business and Mundra power project.

Tata Motors' shares surged nearly 5% on the BSE on Tuesday after the Indian carmaker submitted reply to the a clarification sought by the stock exchange over e-mail.

The BSE sought a clarification from Tata Motors about a report "FIIs raise concerns over Tata Motors Governnance" published in The Economic Times, which said that Foreign Institutional Investors (FII) had written to the carmaker, raising concerns that it (Tata Motors) was getting preferential access to strategy and information.

Mumbai: Tata Motors Ltd, replying to a clarification sought by stock exchanges on a letter written by Cyrus Mistry to the directors of Tata Sons Ltd, has defended and clarified credit and accounting practices related to the Nano car and Tata Motors Finance, its vehicle finance arm.

Mistry, the ousted chairman of Tata Sons, wrote in the leaked letter, “Before 2013, in order to shore up sales and market share, Tata Motors Finance extended credit with lax risk assessment. As a result, NPAs mounted in excess of Rs4,000 crore.”

Leading automaker Tata Motors today said its group sales grew 21 per cent in October while car sales posted the highest sales in four years with a growth of 28 per cent on strong festive demand.Total sales (passenger and commercial vehicles), including exports, rose to 52,813 units in October, posting a growth of 21 per cent, over 43,486 vehicles sold in the same month last year.

Shares of Tata Group companies were trading higher by up to 5%, recouping part of their losses recorded in past three trading sessions.

Tata Motors, Tata Motors DVR, Tata Communications, Tata Metaliks, Tata Elxsi, Tata Teleservices (Maharashtra), Tata Sponge Iron, Tata Coffee, Tata Global Beverages were up between 2%-5% on BSE. Tata Consultancy Services (TCS), however, is down nearly 1% as compared to 0.18% decline in the S&P BSE Sensex at 09:48 am.

Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.