Tata Trusts infighting roils group, ends in uneasy truce
New Delhi: Less than a year after the death of Ratan Tata, the 156-year-old Tata Group witnessed a fresh bout of internal turbulence in 2025, as infighting within Tata Trusts—its powerful philanthropic arm—spilled into the public domain.
Though far less dramatic than the Tata–Mistry boardroom battle of 2016, the episode unsettled the governance framework of India’s most valuable conglomerate.
The focus this time was Tata Trusts, which exerts decisive influence over Tata Sons through its nearly 66 per cent stake.
The conflict pitted Noel Tata, Ratan Tata’s stepbrother and chairman of Tata Trusts since October 2024, against Mehli Mistry, a trustee with links to the Shapoorji Pallonji (SP) family, which owns about 18.37 per cent of Tata Sons.
Usually low-profile, Tata Trusts made headlines repeatedly as details of sharp divisions among trustees emerged. The dispute escalated to the government, underscoring the Tata Group’s economic significance.
In October, Noel Tata, Tata Sons chairman N Chandrasekaran, Tata Trusts vice-chairman Venu Srinivasan and trustee Darius Khambata met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, who urged steps to restore stability to ensure the $180-billion group’s smooth functioning.
Ahead of this intervention, the Trusts was said to be vertically split.
Noel Tata, Venu Srinivasan and former defence secretary Vijay Singh were on one side, while Mehli Mistry, Pramit Jhaveri, Jehangir HC Jehangir and Darius Khambata formed the opposing camp.
The rift stemmed from allegations of governance lapses, conflicts of interest and inadequate communication between Trust nominees on the Tata Sons board and the wider Trust board.
The Mehli Mistry-led group claimed it was kept out of the loop on key decisions, citing Tata Motors’ €3.8-billion acquisition of Iveco and a Rs 1,000-crore funding to Tata International. They also flagged potential conflicts arising from Noel Tata’s multiple leadership roles in group companies while serving as a Trust nominee on the Tata Sons board.
Those aligned with Noel Tata, however, viewed the dissent as an attempt to undermine his leadership.
The flashpoint came at a September 11 meeting convened to consider the reappointment of Vijay Singh as a Tata Sons board nominee. Following Ratan Tata’s death, the Trusts had adopted a policy of annual reappointment for nominee directors above 75.
The proposal to reappoint the 77-year-old Singh was rejected after opposition from four trustees. A subsequent move to nominate Mehli Mistry to the Tata Sons board was blocked, and Singh later resigned voluntarily.
The dispute unfolded amid regulatory pressure, with the RBI deadline for Tata Sons’ public listing as an upper-layer CIC expiring on September 30, and renewed calls from SP Group chairman Shapoorji Pallonji Mistry for a listing to enhance transparency.
Unlike the 2016 confrontation, the 2025 episode ended quietly. Mehli Mistry, first appointed trustee in 2022, was not reappointed after objections from the Noel Tata-led group.
Though he reportedly approached the Maharashtra Charity Commissioner, Mistry later opted for reconciliation and informed Noel Tata of his decision to part ways with the group.
However, signs of a delicate internal balance remain. Noel Tata secured his son Neville’s induction only into the Sri Dorabji Tata Trust, not the Sir Ratan Tata Trust, after objections from Venu Srinivasan—highlighting that power equations within the Tata Trusts are still finely
poised.
