Fragile Truce In Tata Trusts: Noel Tata Secures Son's Entry On One Board, Blocked On Another

 The Tata group's internal power balance remains delicate as Noel Tata succeeded in placing his son, Neville, on the board of one of the two powerful trusts that holds majority stake in Tata Sons, but is said to have failed to get his way in the other, sources said.

After the demise of patriarch Ratan Tata in October last year, Noel took over as the chairman of Tata Trusts, a group of philanthropic organisations that collectively own 65.4% in Tata Sons, the holding company of the 156-year-old Tata Group, which comprises around 400 companies, including 30 listed entities.

On Wednesday, Noel's son Neville and former group company leader Bhaskar Bhat were appointed to the Sri Dorabji Tata Trust (SDTT), which owns 28% in Tata Sons, according to a statement issued by the trust.

However, he couldn't get the two appointed on the Sir Ratan Tata Trust (SRTT), which holds 23.6% in Tata Sons, sources said.

This is apparently because of an objection raised by Venu Srinivasan, trustee in the SRTT and its vice-chairman, they said.

Srinivasan, they said, objected to the manner in which the proposals for the appointments were brought up. While the appointments were on the agenda of SDTT, they were not on the list of items to be discussed in the meeting of SRTT.

Sources said Srinivasan was of the view that such a matter should not have been brought up under "any other items for discussion" in the agenda. He felt a proper discussion was necessary for such a resolution to be considered and approved.

Other Tata-affiliated trusts own 13.8% in Tata Sons.

Tata Trusts and Srinivasan did not respond to requests for comments.

The drama at the trust meeting came weeks after long-time trustee Mehli Mistry, a confidant of Ratan Tata, was ousted from the board. Mistry is related to the Shapoorji Pallonji family, which owns an 18.4% stake in Tata Sons.

Besides, 65.4% owned by Tata Trusts and 18.4% of Pallonji Mistry group, other shareholders hold the remaining 16.2% in Tata Sons.

The Shapoorji Pallonji family had been embroiled in a long-standing corporate shareholder dispute with the Tata family since the ousting of Cyrus Mistry (cousin of Mehli Mistry) as Tata Sons' Board Chairman in 2016. There is no one else left from the Mistry clan in the Tata Sons' Board of Directors.

While Ratan Tata was said to be the force behind the ouster of Cyrus, Mehli had made amends with the patriarch and become his close confidant. Mehli, who had supported the appointment of Noel as the chairman, along with two other trustees, had objected to certain decisions at the Trust.

In September, Mistry and three other trustees -- former Citibank India CEO Pramit Jhaveri, Mumbai lawyer Darius Khambata, and Pune-based philanthropist Jehangir HC Jehangir -- voted to remove former defence secretary Vijay Singh -- a Noel camp trustee as Tata Trusts' representative on the board of Tata Sons.

Last month, Noel, TVS Motor Co Chairman Emeritus Venu Srinivasan and Singh voted against Mistry's reappointment as trustee after the end of his three-year tenure.

The appointment of Srinivasan, who was unanimously made lifelong trustee in October, had to be revisited "in compliance with legal and regulatory requirements".

The Maharashtra government had in September amended the Maharashtra Public Trusts Act, thereby limiting the number of lifetime trustees to one-fourth of the board strength and mandated fixed terms where trust deeds are silent.