Tata Trusts expects unity and resolution amid boardroom tensions: Report
The Tata Group dispute stems from differences among Tata Trusts trustees, who have split into two factions led by Noel Tata and Mehli Mistry.
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Members of the Tata Trusts Group have reportedly expressed confidence that the ongoing internal tensions will be resolved following upcoming deliberations. According to CNBCTV18, an anonymous source said, “We are confident that the group will move forward with unity and purpose.”
The dispute has arisen from differences among the trustees of Tata Trusts, which has split into two factions—led by Noel Tata and Mehli Mistry. Noel Tata, half-brother of the late Ratan Tata, became chairman of Tata Trusts after Ratan Tata’s passing. Mehli Mistry, cousin of former Tata Sons chairman Cyrus Mistry and linked to the Shapoorji Pallonji family, has expressed disagreements with Noel Tata over board appointments.
The conflict came to light during a September 11 board meeting, when Tata Trusts approved the reappointment of 77-year-old former Defence Secretary Vijay Singh—a Tata loyalist—as a nominee director to the Tata Sons board. Tata Trusts collectively own 66% of Tata Sons, while the Shapoorji Pallonji group holds 18.37%.
Following Ratan Tata’s death, the Trust introduced a policy requiring the reappointment of Tata Sons nominee directors only until the age of 75. While Noel Tata and trustee Venu Srinivasan, Chairman Emeritus of TVS Group, supported Vijay Singh’s reappointment, opposition came from Mistry, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata. Mistry’s faction also proposed nominating Mehli Mistry, which was rejected by Noel Tata’s side.
The dissenting trustees have alleged that they were being sidelined from key decisions and called for greater transparency and corporate governance reforms. Amid the standoff, Vijay Singh resigned from the board.
The trustees are scheduled to meet on Thursday to resolve the issue. The tension in one of India’s oldest conglomerates has escalated to the extent that on Wednesday, Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman met with Noel Tata, Tata Sons chairman N. Chandrasekaran, and trustees Darius Khambatta and Venu Srinivasan. CNBCTV18 reported that the government’s intervention aims to contain the widening rift among Tata Trusts, which holds a majority stake in Tata Sons.
