Bengaluru/Mumbai: A fresh storm is brewing within Tata Trusts, the powerful philanthropic arm controlling over 51% of Tata Sons, as internal divisions threaten to disrupt its long-standing governance structure.
In a significant development, Chairman Noel Tata and vice chairmen Venu Srinivasan and Vijay Singh have opposed the reappointment of Mehli Mistry, a close confidant of the late Ratan Tata, as a permanent trustee. The move marks one of the most visible power struggles within the group since Ratan Tata’s passing in October 2024.
A Divided Vote at the Helm of Tata Trusts
According to insiders, Tuesday’s meeting saw Noel Tata, Srinivasan, and Singh vote against Mistry’s candidature for lifelong trusteeship. In contrast, trustees Pramit Jhaveri, Darius Khambata, and Jehangir H.C. Jehangir voted in favour of Mistry.
This split decision stands in stark contrast to the consensus-driven model the Trusts have followed for decades. Just a week earlier, when Srinivasan was confirmed as a lifelong trustee, the decision was described as a “procedural formality” and was approved unanimously.
Under the Trusts’ internal governance rules, however, appointments and removals require unanimous consent — making this disagreement both procedurally and legally significant.
Legal Challenge Likely from Mehli Mistry
Sources close to the matter revealed that Mehli Mistry is expected to challenge the decision in court, citing a prior agreement from 17 October 2024, where all trustees reportedly consented to grant themselves permanent status.
If this challenge proceeds, it could set off a governance crisis at Tata Trusts, potentially disrupting the philanthropic entities that serve as the primary shareholders of Tata Sons — India’s largest and most influential conglomerate.
Senior Supreme Court lawyer H.P. Ranina commented that such a legal challenge would be within Mistry’s rights.
“If any trustee fails to get reappointed despite a prior agreement, it would amount to a violation of that decision. The affected trustee has every right to pursue legal recourse,” Ranina stated.
Growing Rift Since Ratan Tata’s Demise
Tensions within Tata Trusts have been building since Noel Tata took over as chairman on 11 October 2024, just two days after Ratan Tata’s death. The divide widened further in September, when three trustees — Jhaveri, Khambata, and Jehangir — voted with Mistry to remove Vijay Singh as their representative on the Tata Sons board.
That move, viewed as a protest against what some trustees perceived as a lack of transparency in Tata Sons’ board decisions, revealed deep fissures in the promoter group.
Noel Tata and Srinivasan, meanwhile, continue to represent Tata Trusts on the Tata Sons board, maintaining their influence over the conglomerate’s operations despite internal discord.
What’s at Stake for Tata Trusts
The current impasse poses two major challenges for Tata Trusts:
- Legal uncertainty — A court battle could delay critical decisions and cast a shadow over the Trusts’ credibility.
- Governance instability — With trustees now openly divided, reaching unanimous decisions — a cornerstone of Tata Trusts’ functioning — may become increasingly difficult.
The Sir Ratan Tata Trust and Sir Dorabji Tata Trust, together holding a controlling 51% stake in Tata Sons, have long been considered paragons of philanthropic governance and corporate stewardship. However, this latest rift threatens to alter that image, possibly impacting decision-making across the Tata ecosystem.
Silence from the Trustees
Queries sent to all seven trustees remained unanswered at the time of publication. The lack of an official statement underscores the sensitivity and volatility of the situation, which could have long-term implications for both Tata Trusts and Tata Sons.
As the story continues to unfold, all eyes remain on whether the trustees can bridge their widening divide — or if this internal conflict will mark the beginning of a new and turbulent chapter in the Tata legacy.