A major internal conflict has recently surfaced within the esteemed Tata Trusts, the philanthropic organization that holds a controlling stake in the venerable Tata Group. Noel Tata, who chairs the Trusts, along with two other powerful trustees reportedly close to him, has successfully blocked the reappointment of businessman Mehli Mistry as a trustee. Mistry is widely known for his close association with the late patriarch of the Tata Group, Ratan Tata.
Sources familiar with the matter indicate that the move further deepens an existing rift within the Trusts. Noel Tata assumed leadership of Tata Trusts last year, following the passing of Ratan Tata.
The decision came after a vote where Venu Srinivasan, Chairman Emeritus of TVS Motor Co., and former defense secretary Vijay Singh joined Noel Tata in opposing Mistry’s continued tenure. His three-year term as a trustee concluded on Tuesday.
Conversely, three other trustees—Pramit Jhaveri, former CEO of Citibank India; Darius Khambata, a prominent Mumbai lawyer; and Jehangir HC Jehangir, a philanthropist based in Pune—who are perceived as allies of Mr. Mistry, voted in favor of his reappointment.
This unprecedented split represents a significant deviation from the typically consensus-driven approach that has long characterized the Tata Trusts.
Both Noel Tata and Mehli Mistry wield considerable influence within the Tata Trusts, which controls a 66% stake in Tata Sons, the holding company of the 156-year-old Tata Group. This colossal conglomerate encompasses approximately 400 companies, including 30 publicly listed entities. The underlying differences between these two factions became publicly apparent in September when Mr. Mistry and his three allies had previously voted to remove Mr. Singh as Tata Trusts’ representative on the board of Tata Sons.
In a contrasting development last week, Mr. Srinivasan was unanimously appointed as a lifelong trustee, a decision that underscores the shifting dynamics within the organization.
While Mr. Mistry has refrained from commenting on his future plans, it is widely anticipated that he may challenge this decision in court.
When approached for comment, Tata Trusts officially declined to make any statement regarding the matter.