Mehli Mistry, a close aide of the late Ratan Tata and relative of the Shapoorji Pallonji family, has been voted out of Tata Trusts.
His reappointment, opposed by Noel Tata, Venu Srinivasan, and Vijay Singh, would have made him a lifetime trustee.
The decision was taken by majority vote at both key trusts, the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust.
Mehli Mistry, a close aide of the late industrialist Ratan Tata and a distant relative of the Shapoorji Pallonji Group’s promoter Mistry family, has been voted out of Tata Trusts. His ouster came after Trusts’ Chairman Noel Tata, Vice Chairman Venu Srinivasan, and trustee Vijay Singh declined to approve his reappointment to two of the trusts, according to a report by The Economic Times (ET).
The reappointment would have made Mistry a lifetime member of the Trusts, which collectively own over 65% of Tata Sons, the salt-to-software conglomerate.
Mistry’s removal was decided by majority vote at both key trusts where he served, the Sir Ratan Tata Trust (SRTT) and the Sir Dorabji Tata Trust (SDTT). The SDTT trustees include Noel Tata, Venu Srinivasan, Vijay Singh, Mehli Mistry, Pramit Jhaveri, and Darius Khambata. At SRTT, the trustees are Noel Tata, Venu Srinivasan, Vijay Singh, Jimmy Tata, Jehangir HC Jehangir, Mehli Mistry, and Darius Khambata.
As Mistry could not vote on his own renewal, the SDTT decision was made by majority. Since Jimmy Tata rarely participates in trust deliberations, the outcome at SRTT was effectively a majority decision as well, ET reported. It was earlier noted that Darius Khambata, Pramit Jhaveri, and Jehangir HC Jehangir had supported Mistry’s renewal.
The decision was finalised by the trustees late last Thursday and early Friday morning. Mistry’s tenure was due to end on October 28.
Traditionally, trustee appointments at Tata Trusts have been made unanimously. However, that convention was broken on September 11 this year when a majority vote removed Vijay Singh from the Tata Sons board as a nominee director. The newspaper noted that the 1932 trust deed of the Sir Dorabji Tata Trust permits majority-based decisions, and a 2024 resolution, passed shortly after Ratan Tata’s death, stated that trustees would be reappointed for life. However, the resolution did not clarify how such reappointments would be implemented.
What Mistry’s Removal Means
Since internal divisions within Tata Trusts became public, reports suggested that Mistry led a faction of four trustees opposing Noel Tata’s growing influence over the Trusts and Tata Group companies. His faction, which included Darius Khambata, Pramit Jhaveri, and Jehangir HC Jehangir, allegedly accused the other three trustees of withholding full information on Tata Sons’ decisions.
At one stage, Mistry’s faction was also rumoured to be sympathetic to Tata Sons’ minority shareholder, the Shapoorji Pallonji Group, and was seen as supporting a potential public listing of Tata Sons.
Earlier this month, when trustees approved the reappointment of Venu Srinivasan, Mistry reportedly insisted that all future reappointments should be unanimous. Although this condition was not legally binding, ET has reported that Mistry may challenge the decision.
Who Is Mehli Mistry?
Mehli Mistry is also the promoter of the M Pallonji Group, which has interests in industrial painting, shipping, dredging, and car dealerships. Several Tata companies are listed as clients or associates, including Tata Steel, Tata Power, and Tata Motors. He also serves as a trustee of the Breach Candy Hospital Trust.
Mistry is an estranged cousin of Shapoor Mistry and the late Cyrus Mistry of the Shapoorji Pallonji Group.
