Tata Trusts reappoints Venu Srinivasan as ‘trustee for life’ amid internal rift

Amid ongoing tensions within the Tata Group, Tata Trusts has reappointed Venu Srinivasan, Chairman Emeritus of TVS Group, as a trustee for life, according to a PTI report citing sources. The reappointment was said to be unanimous.

The focus now shifts to the reappointment of Mehli Mistry, whose term ends on October 28, and who has been at the centre of disagreements within the Trusts.

India’s 156-year-old conglomerate is witnessing a rare internal split within Tata Trusts, which has divided into two factions — one led by Noel Tata and the other by Mehli Mistry. Noel Tata, half-brother of the late Ratan Tata, took over as Chairman of Tata Trusts in October 2024 following Ratan Tata’s passing. Mistry, cousin of former Tata Sons chairman Cyrus Mistry and linked to the Shapoorji Pallonji (SP) Group, has reportedly disagreed with Noel Tata over board appointments and decision-making processes.

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In a significant move on October 17, 2024, Tata Trusts passed a resolution stating that any trustee, upon completion of tenure, will be reappointed for life, without limits on term duration. The resolution further stated that any trustee opposing a fellow trustee’s reappointment would be deemed in breach of commitment and unfit to serve on the board of the charitable trusts.

The resolution emphasized that trustees are “charged with public duty and specifically tasked by Ratan N Tata.” Previous trustees, including JRD Tata, Ratan Tata, Jamshed Bhabha, and R.K. Krishna Kumar, all served until their passing.

Under the Tata Trusts umbrella, the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust together hold about 52% ownership in Tata Sons.

During the October 17 meeting, the Trusts also decided that directors nominated to the Tata Sons board would be reviewed upon attaining 75 years of age. At that time, Noel Tata was nominated to the Tata Sons board. The Trusts also specified that any breach of the lifetime reappointment principle could trigger a reconsideration of resolutions passed at the same meeting.

The current trustees of Tata Trusts include Noel Tata, Venu Srinivasan, Mehli Mistry, Vijay Singh, Pramit Jhaveri, Darius Khambata, and Jehangir Jehangir.

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The rift became public last month when the Trust’s decisions revealed a clear divide between the Noel and Mistry camps. The Mistry faction, connected to the SP Group which holds 18.37% of Tata Sons, opposed certain appointments, alleging sidelining in key governance matters.

In September, the Trusts’ decision to reappoint 77-year-old former Defence Secretary Vijay Singh, considered a close Tata loyalist, as a nominee director on the Tata Sons board, was opposed by the Mistry faction. They had proposed Mehli Mistry as a replacement, but Noel Tata rejected the suggestion. Subsequently, Vijay Singh resigned from the Tata Sons board.