Tata Trusts faces internal rift as Noel Tata-led group blocks Mehli Mistry’s reappointment

New Delhi: A sharp division has emerged within the Tata Trusts after chairman Noel Tata and two trustees close to him opposed the reappointment of businessman Mehli Mistry, a long-time confidant of the late Ratan Tata, deepening tensions in the powerful philanthropic body that controls Tata Sons, the holding company of the Tata Group.

According to people familiar with the development, Noel Tata, along with TVS Motor Co chairman emeritus Venu Srinivasan and former defence secretary Vijay Singh, voted against Mistry’s reappointment following the end of his three-year term on Tuesday. The other three trustees — former Citibank India CEO Pramit Jhaveri, Mumbai lawyer Darius Khambata, and Pune-based philanthropist Jehangir HC Jehangir — supported Mistry’s continuation.

The split, described as unprecedented by those close to the matter, marks a significant departure from the traditionally consensus-driven approach of the Trusts. “This is the first time such a clear division has surfaced within the Tata Trusts,” one person said.

Noel Tata and Mehli Mistry are widely seen as representing two distinct power centres within the organisation. Tata, who succeeded Ratan Tata as chairman of Tata Trusts last year, is backed by Srinivasan and Singh, while Mistry is supported by Jhaveri, Khambata and Jehangir.

Tensions between the two factions surfaced earlier in September when Mistry and three trustees voted to remove Vijay Singh as the Trusts’ representative on the Tata Sons board. However, last week, Srinivasan was unanimously appointed a lifetime trustee — a move that consolidated Noel Tata’s position.

Sources said Mistry, who has not commented publicly, is likely to challenge the decision in court. His argument could rest on a joint resolution passed by the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust on October 17 last year, just days after Ratan Tata’s death. The resolution had agreed that all trustees would hold their positions permanently.

A circular issued last week by the Tata Trusts CEO had sought Mistry’s reappointment to three key entities — the Sir Ratan Tata Trust (SRTT), the Sir Dorabji Tata Trust (SDTT), and the Bai Hirabai Jamsetji Tata Navsari Charitable Institution. However, the proposal was blocked at both SRTT and SDTT by Noel Tata’s faction.

Currently, SRTT’s trustees include Noel Tata, Venu Srinivasan, Vijay Singh, Jimmy Tata, Jehangir HC Jehangir, Mehli Mistry, and Darius Khambata. SDTT’s trustees are Noel Tata, Srinivasan, Singh, Mistry, Jhaveri, and Khambata.

Earlier, Srinivasan’s reappointment as trustee and Vice-Chairman of Tata Trusts had been approved unanimously, though Mistry and his allies had attached a condition requiring all future trustee renewals to be unanimous. The agreement warned that if unanimity failed, prior approvals could be revoked.

The division also reflects differing interpretations of the October 17, 2024, resolution. One side argues that trustee renewals and fresh appointments require unanimous approval, while the other maintains that once a trustee is appointed, the continuation is automatic and permanent.

Minutes of that meeting, reviewed by sources, show that trustees had resolved to reappoint members indefinitely upon tenure expiry, without limits. The resolution also stated that any trustee voting against such a decision would be in breach of commitment and “not fit and proper” to serve. It warned that any breach could lead to reopening previous resolutions, including Noel Tata’s appointment as director on the Tata Sons board.

The same resolution stipulated that trusteeship would be held on a long-term or lifetime basis, with performance review only upon reaching the age of 75. The escalating rift has drawn government attention. Earlier this month, Noel Tata and Tata Sons chairman N Chandrasekaran met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman. Officials are believed to have urged both sides to settle the dispute internally and prevent it from affecting the group’s public image, given its major role in India’s economy.

Tata Trusts, the umbrella body overseeing several charitable foundations including the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, holds about 66 per cent of Tata Sons, the holding company of the 156-year-old Tata Group. The conglomerate spans nearly 400 companies, including 30 listed entities across sectors from software to steel.