Tata Trusts-Tata Sons Row: Mehli Mistry Says ‘TEDT Will Not Pay’ Legal Expenses

Tata Education and Development Trust (TEDT) trustee Mehli Mistry has objected to any possible use of the trust’s funds to pay legal expenses arising from the dispute between Tata Trusts and the Tata Sons board over N Chandrasekaran’s reappointment as chairman.

In an email to Tata Trusts CEO Siddhartha Sharma, which was also ‘CC’d’ to Tata Trusts Chairman Noel Tata and fellow TEDT trustee JN Mistry, Mehli said TEDT would not bear any part of the legal expenses related to the dispute, according to ANI, which reviewed the email.

“I am saddened to read about the litigation between Trustees, Tata Sons and Tata Trusts. This has been unprecedented over the past 150 years!” Mehli said in the email.

Importantly, Mehli’s email does not say that TEDT funds are currently being used for the dispute or that any such expenditure has been proposed. His objection is based on his concern that the trust could potentially be asked to bear the legal costs.

Mehli Mistry Draws Line On Legal Expenses

Mehli said he did not want to comment on the people involved in the dispute but made it clear that TEDT would not pay for legal expenses arising from it.

He said TEDT was not a shareholder of Tata Sons and therefore should remain separate from the dispute. Mehli also asked for his email to be tabled and recorded at the next TEDT Board of Trustees meeting, scheduled for November 20, 2026.

Importantly, Mehli’s email does not say that TEDT funds are currently being used for the dispute or that any such expenditure has been proposed. His objection is based on his concern that the trust could potentially be asked to bear the legal costs.

Dispute Over Chandrasekaran’s Reappointment

The objection comes amid the wider dispute over Chandrasekaran’s continuation as Tata Sons chairman. Chandrasekaran had told the Tata Sons board on August 12 that he would not seek another term when his existing tenure ends on February 20, 2027.

The Sir Dorabji Tata Trust (SDTT) subsequently respected his decision and began the process of setting up a selection committee to identify his successor. However, the Tata Sons board on September 17 approved Chandrasekaran’s reappointment for another five years in a reported 4-1 vote, with Noel Tata voting against.

Tata Trusts later called the resolution a “legal nullity”, citing provisions of Tata Sons’ Articles of Association relating to the role of Trust nominee directors. The Trusts has maintained that the succession process should continue.

Tata Trusts Holds 66% Of Tata Sons

Tata Trusts collectively owns around 66% of Tata Sons’ equity. SDTT holds 27.98%, while Sir Ratan Tata Trust holds 23.56%, giving the two principal Trusts a combined 51.54% stake.

TEDT is an allied trust under SRTT. Mehli has specifically said that TEDT is not a Tata Sons shareholder and therefore stands apart from the dispute.

The Chandrasekaran row has also overlapped with differences over the future ownership structure of Tata Sons. Tata Trusts said on September 17 that it had not agreed to a listing of Tata Sons and wanted alternatives to listing to be examined before any decision is taken.