Mehli Mistry’s Tata Trusts reappointment was rejected by a majority of trustees.
He may risk losing his TEDT role if he challenges his removal legally.
Mistry remains on boards of TEDT, Breach Candy Hospital and Tata Medical Centre.
Noel Tata’s leadership consolidates control over key Tata Trusts after Mistry’s ouster.
Amid the Tata Trusts boardroom battle followed by the ouster of Mehli Mistry from the trusts, insiders at Tata have said that if Mistry initiates any legal challenge to his removal from the two main trusts, he could risk losing his position at the Tata Education and Development Trust (TEDT), which holds no stake in Tata Sons.
Despite his removal from the trusts that hold a majority of the stakes in Tata Sons, Mistry still holds board positions at TEDT, Tata Medical Centre in Kolkata and Mumbai's Breach Candy Hospital, Economic Times reported.
On October 28,Mistry's reappointment to the two principal trusts, the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, was not approved by a majority of trustees. Following the move, Mistry has approached the Charity Commissioner of Maharashtra with a preemptive caveat that he should be given a hearing before any changes are made to the roster of trustees.
Set about a decade back, TEDT is relatively new and it oversees an estimated ₹5,000-crore corpus focussing on higher education, scholarships and capacity building. Apart from Mehli Mistry, Noel Tata, Venu Srinivasan, Vijay Singh and Jehangir Mistry are on its board. Unlike many other trusts in Tata's charitable universe whose remit is limited to India, TEDT is capable of funding charitable activities abroad.
Mistry has been a trustee at South Mumbai's elite Breach Candy Hospital since 2004 and Tata Group has recently donated ₹500 crore from its corporate social responsibility funds to the hospital.
The two main trusts' majority stake in Tata Sons, the conglomerate's holding company, makes them central to decision-making within the group. Earlier this year, Mistry's removal marked a significant consolidation of control under Noel Tata, who assumed the chairmanship of Tata Trusts.
According to a senior official, Mistry's removal from the two major trusts has effectively curtailed his influence. "We will review terms as and when they come up. As of today, we are not concerned, since his influence stemmed from the two main trusts. Our job is done,” he said.
Mistry is the promoter of the M Pallonji Group of companies, with interests in industrial painting, shipping, dredging, car dealerships and others. Several Tata companies are associates or partners of his ventures.
