Tata Trusts Leadership Crisis: Mehli Mistry Loses Board Position in Escalating Power Struggle

Tata Sons is the investment holding company of the Tata Group (File).

New Delhi:

A significant power conflict within Tata Trusts—the nonprofit philanthropic organization controlling approximately 66 percent of Tata Sons—appears to have intensified on Tuesday when Noel Tata, Venu Srinivasan, and Vijay Singh reportedly voted against extending Mehli Mistry's trusteeship.

Mistry, who last week supported Srinivasan's appointment as life trustee, may have expected reciprocal support despite reportedly leading a challenge. Sources informed NDTV Profit that Mistry might now pursue legal recourse. A resolution approved last year had granted existing trustees lifetime terms.

The resolution, examined by NDTV Profit, stated "... on the expiry of tenure of any trustee, that trustee will be re-appointed... without any limit being attached to period of tenure... in accordance with the law".

However, PTI reported sources claiming that trusteeship renewals "are required to be unanimous, per past practice... (but) renewal for life requires unanimous approval," suggesting Mistry's lifetime appointment needed explicit endorsement from fellow board members.

Should the vote against Mistry remain valid, his removal from the board could potentially resolve a division that many business analysts believed threatened the stability of the Tata Group—a corporate giant whose listed entities have an estimated combined market capitalization of Rs 25 lakh crore.

This division could influence strategic decisions at Tata Sons, the principal holding company of the Tata Group. Tensions surfaced during a September 11 board meeting regarding the reappointment of former Defense Secretary Vijay Singh as a nominee-director to Tata Sons' board.

Trusts Chairman Noel Tata and trustee Srinivasan (also Chairman Emeritus of TVS Group) proposed extending Singh's term. However, four others—Mistry, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata—opposed the resolution, resulting in its rejection.

These events unfolded amid speculation that Mistry and his supporters are attempting to undermine Noel Tata, who was appointed Chairman following Ratan Tata's death in October last year.

NDTV Explains | Tata Trusts Infighting Over Board Seats. What Happened And Why

According to sources, Mistry's faction also alleged exclusion from critical decision-making processes and advocated for enhanced transparency and corporate governance reforms.

Mistry's five-year term expired today.

READ | Tata Sons Chairman N Chandrasekaran's Term Extended By Tata Trusts

Prior to renewing Srinivasan's trusteeship, the board also extended N Chandrasekaran's term as Tata Sons Chairman. NDTV Profit learned he will continue in this position until 2032.

Concerns regarding the Tata Trusts conflict and its potential impact on the group were expressed at the highest governmental levels. Senior Tata executives, including Noel Tata and Chandrasekaran, met with Home Minister Amit Shah and Finance Minister Nirmala Sitharaman earlier this month.

READ | Tata Trusts' "Cordial" Board Meet Amid Tata Sons Row: Sources

The ministers strongly advised Tata officials to maintain institutional stability within the trust and group, and to resolve differences internally, according to individuals familiar with the discussions.

With input from agencies

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