Darius Khambata Exits Tata Trusts, Calls Tata Sons IPO 'Nuclear Option'

Senior advocate Darius Khambata has decided against seeking another term as a trustee of the Sir Dorabji Tata Trust (SDTT) and Sir Ratan Tata Trust (SRTT), bringing his association with the two philanthropic entities to an end.

In a letter dated November 2, 2026, addressed to Tata Trusts Chairman Noel Tata and CEO Siddharth Sharma, Khambata said he did not wish to offer himself for reappointment, as per a report by CNBC-TV18.

Khambata was appointed to both trusts at the invitation of the late Ratan Tata. His SDTT tenure ends on November 9, while his term at SRTT also expires this month.

Pointing out that reappointment requires the consent of all other trustees, Khambata said: "That is a consent that it is not in my character to seek as it would compromise my independence to do so."

Khambata Calls Sep 17 A 'Day Of Infamy'

Khambata was particularly critical of the developments at Tata Sons on September 17, when its board voted 4-1 to reappoint N Chandrasekaran as chairman. Noel Tata was the sole dissenting member. The board also approved a proposal to list Tata Sons, with both decisions awaiting shareholder ratification.

"The sad events of 17 September 2026, a day that will live in infamy, have sullied Tata Sons' reputation and have imperilled the image of corporate India. No spin doctoring can mask what happened," he wrote.

Questioning whether the board would have acted similarly had Ratan Tata been alive, Khambata said, "But duties are owed to institutions, not to individuals. And as Ratan Tata used to say, the institution is always bigger than the individual."

Questions RBI Engagement, Backs Private Ownership

Khambata also expressed disappointment with Tata Sons' engagement with the Reserve Bank of India (RBI) over its application to surrender its registration as a core investment company (CIC).

He said discussions had failed to establish how Tata Sons could adopt the transparency and reporting standards of a listed company while remaining outside the CIC framework.

"Unfortunately, I do not believe that the engagement with the RBI has been meaningful, much less successful, in showing how Tata Sons could fully adopt a listed company's transparency and reporting mechanisms even if it was deregistered as a CIC or could restructure to avoid the nuclear option of listing," he wrote.

On the proposed listing, Khambata reiterated his opposition, describing it as an existential concern for the trusts. He argued that private ownership had enabled Tata Sons to fund ventures and absorb losses without the pressure of short-term shareholder returns.

"Talk of the greater ability to raise capital and higher growth misses the simple truth: the model succeeded precisely because it was not driven by avarice or short-term gain," he said.

He also said he remained supportive of proposals that would provide liquidity to the Shapoorji Pallonji Group.

Concern Over Growing Divide

Khambata expressed sadness over the widening differences between Noel Tata and Chandrasekaran, arguing that leadership should rest on consensus rather than manoeuvring.

He also criticised what he described as a media campaign against trustees who opposed renewing Vijay Singh's tenure as a nominee director on the Tata Sons board.

Khambata concluded by questioning whether those entrusted with Ratan Tata's legacy would preserve the group's governance model or weaken it.

"I leave it to the judgement of history as to whether those to whom Ratan Tata entrusted the Tata model have the statesmanship to rise above personal interest and to preserve, rather than diminish, the model," he wrote.