Tata Trusts is set to decide on granting lifetime trusteeship to Mehli Mistry, a long-time trustee and close associate of Ratan Tata.
Mistry is reportedly facing resistance due to differences with current Tata Trusts Chair Noel Tata.
He has been leading a faction that opposed former Defence Secretary Vijay Singh’s appointment to the Tata Sons board.
All eyes are on Tata Trusts today as it decides the fate of one of its long-time trustees, Mehli Mistry. A close associate of Ratan Tata and cousin of Shapoorji Pallonji Group chief Shapoor Mistry, Mehli Mistry is being considered for lifetime trusteeship at the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, two most influential trusts among a group of philanthropic family charities how majoity own Tata Group.
However, his reported differences with current Tata Trusts Chair Noel Tata are expected to hinder his chances of securing the position. According to reports, Mistry has led a four-member faction within the Trusts that opposed the appointment of former Defence Secretary Vijay Singh to the Tata Sons board. The move led to Singh’s resignation. Mistry had also insisted that all Trust decisions be made unanimously earlier this month.
According to Business Standard, the resolution to reappoint Mistry must be finalised by October 28. Three trustees — Chair Noel Tata, Vice-Chairmen Venu Srinivasan and Vijay Singh — are yet to submit their decision. The other three members — senior lawyer Darius Khambata, banker Prameet Jhaveri and Jehangir H. C. Jehangir — have approved the renewal of Mistry’s term.
As per The Economic Times, the Tata-led faction is expected to oppose Mistry’s reappointment. The paper suggests this could spark an unprecedented dispute among the seven-member executive body of Tata Trusts, which controls India’s largest conglomerate, Tata Sons. A negative decision, it reports, could even lead to a legal battle.
The Threat of a Legal Fight
Following Ratan Tata’s passing, Tata Trusts passed a key governance resolution on 17 October 2024, allowing trustees to be reappointed without any limit on tenure, effectively granting lifetime membership. On the same day, Noel Tata was appointed Chair of the Trusts and given lifetime membership.
Since then, only Venu Srinivasan, Chairman Emeritus of TVS Motor Company, has been reappointed as a lifetime trustee earlier this month, after his term at the Sir Dorabji Tata Trust was due to expire.
However, this reappointment came amid internal tussles over the nominee director seat on Tata Sons’ board, an issue Outlook Business has previously detailed. During Srinivasan’s approval process, Mistry reportedly made his consent conditional on all future trustee reappointments being unanimous, warning that he would withdraw support otherwise.
According to reports, Mistry’s condition was meant to safeguard his own upcoming reappointment. However, trustees aligned with Noel Tata reportedly believe Mistry’s demand may not have a legal basis.
But they also claim that Mistry could challenge if he is not given the lifetime tenure.
A New Era for Tata Trusts
Amid earlier disputes that even drew government intervention, Vijay Singh told the media that during Ratan Tata’s tenure, all Trust decisions were made unanimously. But he acknowledged that the Trusts are now in an “unprecedented era” where decisions are being made by vote.
Historically, Tata Trusts operated on consensus. But on September 11, trustees broke from tradition when they voted by majority to remove Vijay Singh as a nominee director on the Tata Sons board. The move exposed deep divisions within one of India’s most powerful charitable bodies and raised questions about whether future trustee reappointments must be unanimous or can proceed by majority vote.
After Ratan Tata’s death, trustees described this as a “moment of transition between two eras.” Their October 17 resolution allowed indefinite reappointments, effectively granting lifetime trusteeship. Yet, the process and criteria for such reappointments remain unclear.
