Copyright timesnownews
Noel Tata, chairman of Tata Trusts, along with trustees Venu Srinivasan and Vijay Singh, rejected the reappointment of Mehli Mistry as a lifetime trustee, deepening the governance divide at the philanthropic body that controls the majority stake in Tata Sons, according to a new agency PTI report citing sources. As per the report, sources close to the matter mention that this decision deepens the divide at the philanthropic arm that controls the holding company of the Tata Group. Noel Tata was appointed head of Tata Trusts following the death of Tata Group patriarch Ratan Tata last year. The Trusts, which control a 66 per cent stake in Tata Sons, the holding company of the 156-year-old salt-to-software conglomerate, are now witnessing an unprecedented internal divide. Mistry Voted Out At a meeting on Tuesday, trustees Venu Srinivasan, chairman emeritus of TVS Motor Co., and former defence secretary Vijay Singh voted against the reappointment of Cyrus Mistry as trustee after his three-year term ended. The three other trustees—former Citibank India CEO Pramit Jhaveri, Mumbai lawyer Darius Khambata, and Pune-based philanthropist Jehangir HC Jehangir- supported Mistry’s return, as per the report. This vertical split marks a sharp departure from the consensus-driven decision-making that has characterised the Trusts in recent years. Two distinct power centres have emerged: Noel Tata, backed by Srinivasan and Singh, and Mehli Mistry, supported by Jhaveri, Khambata, and Jehangir. Tensions between the camps first surfaced in September, when Mistry and his allies voted to remove Singh as Tata Trusts’ representative on the Tata Sons board. However, in a surprising turn last week, Srinivasan was unanimously appointed as a trustee for life, claims the PTI report. What Is Mehli Mistry's Next Step While Mistry has remained silent on his next steps, sources said in the report that he may challenge the decision in court. His challenge is expected to rest on a joint resolution passed on October 17, 2024, just days after Ratan Tata’s death, which stated that all trustees would be made permanent. According to sources in the report, the CEO of Tata Trusts had recently circulated a note recommending Mistry’s reappointment to the Sir Ratan Tata Trust (SRTT), the Sir Dorabji Tata Trust (SDTT), and the Bai Hirabai Jamsetji Tata Navsari Charitable Institution. At present, the trustees of SRTT include Noel Tata, Venu Srinivasan, Vijay Singh, Jimmy Tata, Jehangir HC Jehangir, Mehli Mistry, and Darius Khambata. For SDTT, the trustees are Noel Tata, Venu Srinivasan, Vijay Singh, Mehli Mistry, Pramit Jhaveri, and Darius Khambata.
