Tata Trusts-Mistry Row: Hearing On Trustee Exit Deferred To October 15

The Maharashtra Charity Commissioner on September 8 adjourned the hearing on objections filed by former Tata Trusts trustee Mehli Mistry against the change reports recording his exit from three Tata trusts, according to a Moneycontrol report. The next hearing has been scheduled for October 15.

Lawyers representing Tata Trusts sought more time to file their response to Mistry’s objections, citing, among other issues, the exit of Vijay Singh from the Sir Ratan Tata Trust (SRTT), the news publication reported. Mistry’s lawyer opposed the request for an adjournment, according to people familiar with the proceedings cited by the publication.

Singh did not seek reappointment as an SRTT trustee after his term ended on August 14. The development has added another procedural issue to Mistry’s challenge concerning his cessation as a trustee of SRTT, Sir Dorabji Tata Trust (SDTT) and Bai Hirabai Jamsetji Tata Navsari Charitable Institution.

What Is Mehli Mistry’s Challenge?

Mistry’s objections include allegations of governance lapses and potential conflicts of interest involving trustees, including Tata Trusts chairman Noel Tata, Vijay Singh and Venu Srinivasan, Moneycontrol reported.

Mistry has questioned the disclosure of income received by trustees from other Tata group companies and raised concerns over potential conflicts involving Srinivasan, who is also chairman emeritus of TVS Motor Company.

His filings also referred to the engagement of Gerry McGovern, then a senior executive at Jaguar Land Rover, as a consultant for Norton Motorcycles, which is part of the TVS group. Mistry cited the arrangement while raising questions over Srinivasan’s positions in the Tata Trusts and TVS group.

These are allegations made by Mistry in his filings and have not been established as findings by the Charity Commissioner.

Tata Trusts Disputes Some Claims

Mistry has also raised questions over trustee appointments, reappointments, remuneration and compliance with requirements for reporting changes in trustee composition, according to Moneycontrol.

In his objections concerning the Bai Hirabai Jamsetji Tata Navsari Charitable Institution, Mistry challenged the eligibility of Singh and Srinivasan as trustees, citing provisions in the trust’s 1923 deed concerning Parsi Zoroastrians residing in the erstwhile Bombay Presidency.

Tata Trusts has disputed this position. In its response, the Trusts said non-Zoroastrians have served on the Bai Hirabai Trust since 2000 based on legal advice obtained from a former Chief Justice of India. The Trusts also acknowledged that the original 1923 regulations contained restrictions on non-Zoroastrians serving as trustees.

Why The Case Matters

SRTT and SDTT are the two largest Tata trusts and together hold 51.54% of Tata Sons, the unlisted holding company of the Tata group. The broader Tata Trusts network collectively owns around 66% of Tata Sons.

Separately, the Maharashtra Charity Commissioner is examining the affairs of SRTT following complaints concerning its governance and board composition. The regulator has restricted SRTT from holding board meetings while the inquiry remains pending.

The next hearing in Mistry’s objections is scheduled for October 15, when Tata Trusts is expected to place its response before the Charity Commissioner, according to the report.