Tata Trusts Dispute Enters Legal Phase as Mehli Mistry Approaches Charity Commissioner

Mehli Mistry has reportedly approached the Maharashtra Charity Commissioner to ensure that no changes are made to the Trusts’ membership without first granting him a hearing. This move comes just days after a group of trustees led by Tata Trusts Chair Noel Tata denied Mistry’s reappointments to two key charitable trusts, the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust.

Mistry has filed a caveat with the Mumbai Charity Commissioner, which has been issued to all trustees of the Sir Dorabji Tata Trust, the Sir Ratan Tata Trust, and the Bai Hirabai Jamsetji Navsari Charitable Institution, several reports have claimed.

A caveat is a legal safeguard that ensures the petitioner is informed of and allowed to participate in proceedings before any order is passed. In this case, it prevents the approval of changes to the Trusts’ board without hearing Mistry’s side. The Tata Trusts are also expected to present their case before the Charity Commissioner.

Under the Maharashtra Public Trusts Act, any change in trustees must be reported to the Assistant Charity Commissioner within 90 days under Section 22. The new board structure, including updates to signatories and official documents, can take effect only after it receives the Commissioner’s approval.

Once such a report is filed, the officer issues a notice to the affected trustee, allowing them to contest the decision. The case is then heard before the Assistant or Deputy Charity Commissioner, whose ruling can be appealed in the Bombay High Court.

The Charity Commissioner serves as the primary judicial authority for matters related to public charitable institutions, Outlook Business reported last week.

In this instance, Mehli Mistry has moved the Charity Commissioner even before the change report was filed. The Commissioner acts as a quasi-judicial authority guided by each Trust’s deed and bye-laws. According to an Economic Times report, lawyers for both Mistry and the trustees have already visited the Commissioner’s office in Worli.

Mistry’s reappointment to the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust was rejected by a majority of trustees on October 28. These two key trusts hold a controlling stake in Tata Sons, the group’s main holding company.

Mistry is expected to argue that his lifetime reappointment should be made in accordance with the resolution passed on October 17, 2024, soon after Ratan Tata’s death. However, trustees may counter that the resolution does not guarantee automatic reappointment and that such an interpretation would breach their fiduciary responsibilities.