Mistrust in Tata Trusts: Tata Vs Mistry 2.0

New Delhi, Dec 25 (PTI) Less then a year after the death of Ratan Tata, the edifice of the 156-year-old Tata group was shook with a Tata versus Mistry sequel in 2025, albeit in a different setting and the magnitude not as intense as the 'Rumble in Bombay House' of 2016.

This time it was the Tata Trusts -- the aggregation of philanthropic bodies that exerts decisive influence over India's most valuable conglomerate through its about 66 per cent stake in Tata Sons, the promoter and holding company of the salt-to-semiconductor group -- that was under the spotlight following infighting among its trustees over board appointment and governance issues.

The protagonists were Noel Tata, Ratan Tata's stepbrother, who became the Chairman of Tata Trusts after his appointment in October last year, and Mehli Mistry, who has ties with the extended Shapoorji Pallonji family that owns about 18.37 per cent of Tata Sons, and a close confidant of the late, revered industrialist.

The usually reticent Tata Trusts found itself hitting the headlines repeatedly as the inside story of the one-upmanship between two groups of its trustees -- one led by Noel Tata and another by Mehli Mistry -- found its way to the media.

In an unprecedented manner, the matter reached the government, and it was not surprising considering how significant the Tata Group is to the country's economy.

Tata Trusts Chairman Noel Tata, Tata Sons Chairman N Chandrasekaran, along with Tata Trusts Vice Chairman Venu Srinivasan and trustee Darius Khambata, met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman in October, where they were told to do what it took to restore stability so that the functioning of the USD 180 billion conglomerate was not impacted.

Before the government intervened, the Trusts was said to be vertically split with Chairman Noel Tata, Venu Srinivasan (chairman emeritus of TVS Group) and former defence secretary Vijay Singh on one side and four other trustees -- Mehli Mistry, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata -- in the opposing side.

The dispute has its roots over allegations of governance issues, conflict of interest and lack of communication between trustees nominated to the Tata Sons board and the rest of the Trust board.

The group led by Mehli Mistry felt they were kept out of the loop on key matters and pointed out instances such as Tata Motors' 3.8 billion euro acquisition of Italian automaker Iveco and Rs 1,000-crore funding to Tata International were done without proper communication to the Trust board.

They also raised conflict of interest concerns regarding Noel Tata's roles as he also chaired Tata group firms, including Tata International, Trent, Voltas, and Tata Investment Corporation, while serving as a Trust nominee on the Tata Sons board.

On the other hand, some within the Tata group felt that the four trustees led by Mehli Mistry were trying to undermine Noel Tata's leadership in Tata Trusts.

The flashpoint was 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, convened on September 11 to consider the reappointment of Vijay Singh as a nominee director on the Tata Sons board.

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 Singh - a director since 2012 and trustee since 2018 - was proposed by Noel Tata and Venu Srinivasan. However, the four other trustees -- Mehli Mistry, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata -- opposed the move, leading to the resolution's rejection.

Thereafter, the four trustees sought to nominate Mehli Mistry to the Tata Sons board, but Noel Tata and Venu Srinivasan opposed the move.

Subsequently, Vijay Singh voluntarily resigned from the Tata Sons board.

The development came 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 had applied "for voluntary surrender of the Certificate of Registration as a CIC (Core Investment Company) and to continue as an 'unregistered CIC'.

Adding pressure to the situation was SP Group Chairman Shapoorji Pallonji Mistry who reiterated calls for public listing of Tata Sons to bring transparency, amid infighting among trustees of Tata Trusts. The Shapoorji Pallonji family owns about 18.37 per cent of Tata Sons.

The relationship between the SP Group and the Tata Group became strained after the unexpected sacking of late Cyrus Mistry as Chairman of Tata Sons in October 2016, following which acrimonious board room fights and legal battles ensued. The group has been looking at leveraging its shareholding in Tata Sons to raise funds and pare its debt.

Unlike the first edition of Tata versus Mistry of 2016, the 2025 sequel ended in an anticlimax when Mehli Mistry, who was first appointed to Tata Trusts in 2022 for a three-year term, was ousted when his reappointment was objected by Noel Tata-led group of trustees.

Although Mehli Mistry reportedly filed a caveat petition before the Maharashtra Charity Commissioner, he ultimately chose to smoke the peace pipe with Noel Tata to whom he wrote informing about his decision to part ways with the Tata group.

Noel Tata could secure his son Neville's entry only on the board of Sri Dorabji Tata Trust (SDTT) but not in Sir Ratan Tata Trust (SRTT) because of an objection raised by Venu Srinivasan, trustee in the SRTT and its vice-chairman, thus indicating that the Tata group's internal power balance remained delicate. PTI RKL ANZ DRR