“Trustees of the People, Not Owners”: Ratan Tata’s 2017 words resonate as Tata Trusts faces internal rift and govt scrutiny
As Tata Trusts, the $180-billion Tata Sons’ controlling body, grapples with boardroom divisions and government intervention, Ratan Tata’s 2017 reflection on philanthropy, ethics, and trusteeship stands as a poignant reminder of the ideals that once defined the institution.
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As Tata Trusts- the philanthropic foundation that owns about 66% of Tata Sons- faces internal divisions and government intervention, the late Ratan Tata’s reflections from 2017 offer an echo of what the institution once stood for.
Read more: Boardroom storm hits Tata Group ahead of Ratan Tata’s first death anniversary; govt steps in
Back in a 2017 interview with Network18, Ratan Tata, then Chairman Emeritus of Tata Sons, spoke at length about the century-old legacy of Tata Trusts, their philanthropic vision, and the principle that the Tatas were “trustees of the people, not owners of wealth.”
“It was a different view of ownership,” he said. “Mr. JRD Tata often used to refer to Tata as being the trustees of the people. Other families could have become tremendously wealthy, but Tata companies were created as institutions for the country… not for personal gain but for the common good of humanity.”
He highlighted how the Trusts- founded over 134 years ago- channeled the wealth of Tata Sons into nation-building institutions like the Indian Institute of Science and Tata Memorial Hospital. “It was natural that Jamsetji’s sons, who had no children, left their ownership in charitable trusts,” he said, adding that the Trusts’ transformation was essential to “remain relevant” in changing times.
“If we had not done that, they would have become irrelevant… creators of edifices that stood out but made no contribution to the country,” Tata had remarked during the interview.
Today, however, the very Trusts that Ratan Tata nurtured as symbols of purpose-driven capitalism are engulfed in turmoil.
Four years after the Supreme Court resolved the Tata Sons-Cyrus Mistry conflict, another power struggle has emerged- this time within Tata Trusts itself.
Following Ratan Tata’s passing in October 2024, his half-brother Noel Tata was appointed Chairman of Tata Trusts. But unlike Ratan, whose moral authority unified the group, Noel now faces a divided board and mounting scrutiny. The dispute- reportedly over governance and board reappointments- has split the Trusts’ trustees, with one faction backing Noel and another aligning with Mehli Mistry, cousin of the late Cyrus Mistry and linked to the Shapoorji Pallonji family, which holds 18.37% in Tata Sons.
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The internal rift escalated to the point that senior government officials (as per media reports)- including Home Minister Amit Shah- intervened, summoning both Noel Tata and Tata Sons Chairman N. Chandrasekaran to ensure stability within the group.
The standoff comes at a symbolic moment: just days before Ratan Tata’s first death anniversary on October 9.
Meanwhile, Tata Consultancy Services (TCS) has cancelled its scheduled press conference for Q2 FY26 results, reportedly to avoid overshadowing the day of remembrance.
Born in 1937, Ratan Tata spent his life upholding the Tata ethos- balancing business excellence with social purpose. Under his leadership, the Tata Group expanded globally, acquiring iconic brands such as Jaguar Land Rover and Tetley Tea, while continuing its philanthropic commitments through Tata Trusts.
Today, as one of India’s most respected conglomerates finds itself at a crossroads, Ratan Tata’s words from 2017 serve as both a reflection and a warning:
“We should protect that [Tata culture] ferociously. The day we lose that… the day we decide to cheat or do something that benefits us and not the customer, we will have lost a very important asset,” late Ratan Tata had said.
![“We should protect that [Tata culture] ferociously. The day we lose that… the day we decide to cheat or do something that benefits us and not the customer, we will have lost a very important asset,” late Ratan Tata had said.](https://images.storyboard18.com/storyboard18/2023/08/Ratan-Tata-1019x573.jpg?impolicy=website&width=910&height=475)
