Noel Tata VS Mehli Mistry? Power struggle In Tata Trusts! What’s clash among trustees over board appointments?

Tata Trusts Chairman Noel Tata and Tata Sons Chairman N Chandrasekaran, along with some trustees of the Tata Trusts met union cabinet ministers.

Tata Trusts has major control over India’s most valuable conglomerate through its 66 per cent stake in Tata Sons. It is currently facing internal discord among its trustees over board appointments and governance matters.

Noel Tata VS Mehli Mistry: What’s Tata Trusts Dispute?

According to PTI report citing sources, the Trusts are divided into two camps one backing Noel Tata, who became the chairman after Ratan Tata’s passing, and the other led by trustee Mehli Mistry, who is closely associated with the Shapoorji Pallonji family, holders of about 18.37 per cent in Tata Sons.

Mehli Mistry is reportedly dissatisfied, claiming he has been excluded from key decision-making discussions.

The PTI report claimed that said the flashpoint is said to be board seats at Tata Sons, which controls the 156-year-old group that spans around 400 companies, including 30 listed firms.

The dispute has its roots in a meeting of six trustees of the Tata Trusts, the umbrella group representing several charitable trusts, including the Sir Dorabji Tata Trust and Sri Ratan Tata Trust.

The meeting on September 11 was convened to consider the reappointment of former defence secretary Vijay Singh as a nominee director on the Tata Sons board.

There are seven trustees of the Tata Trusts, including Singh. Singh did not attend the September 11 meeting as his nomination was on the agenda.

What Happened After Ratan Tata’s Demise?

Following the death of Ratan Tata in October 2024, Tata Trusts introduced a policy requiring annual reappointment of nominee directors on the Tata Sons board once they turn 75. At the September 11 meeting, the reappointment of 77-year-old Vijay Singh – a director since 2012 and trustee since 2018 – was proposed by Trusts Chairman Noel Tata and Venu Srinivasan (chairman emeritus of TVS Group).

However, the four other trustees – Mehli Mistry, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata – opposed the move, leading to the resolution’s rejection.

Following the rejection, the four trustees sought to nominate Mehli Mistry to the Tata Sons board, but Noel Tata and Venu Srinivasan opposed the move, emphasising the need for a transparent process aligned with Tata’s values. Subsequently, Vijay Singh voluntarily resigned from the Tata Sons board.

Another meeting of the Board of Tata Trusts is scheduled for October 10, but the agenda is not known.

Will Govt Intervene In Tata Trust’s Dispute?

PTI sources said that with the infighting among trustees of Tata Trusts threatening to impact the functioning of the over USD 180 billion conglomerate, the intervention of the government has become necessary.

The development comes at a time when the deadline set by the RBI for public listing of Tata Sons, classified as an upper-layer shadow bank, expired on September 30, although the company has applied for “for voluntary surrender of the Certificate of Registration as a CIC (Core Investment Company) and to continue as an ‘unregistered CIC’. The application is under examination by the RBI.

Some within the group feel that the four trustees led by Mehli Mistry have been trying to undermine Noel Tata’s leadership in Tata Trusts.

The matter of listing Tata Sons under the RBI mandate is secondary at the moment compared to the threat of the Tata Group falling into the hands of a few individuals, another source noted.

(With Inputs From PTI)