Noel Tata, top trustees block Mehli Mistry’s re-appointent, deepens rift at Tata Trusts
BENGALURU/MUMBAI: Tata Trusts chairman Noel Tata and vice-chairmen Venu Srinivasan and Vijay Singh did not approve the re-appointment of Ratan Tata’s close confidant businessman Mehli Mistry as permanent trustee; This would potentially throw the philanthropic organizations that control Tata Sons into turmoil, and the outgoing board of trustees is almost certain to oppose the move. in court.
On Tuesday, TVS Motor Co. chairman emeritus Srinivasan Noel Tata and former defense minister Singh voted against Mistry’s nomination as life trustee, according to executive knowledge of the development.
Three other trustees – former Citibank India CEO Pramit Jhaveri, Mumbai lawyer Darius Khambata and Pune-based philanthropist Jehangir HC Jehangir – voted in favour.
The split vote marks a sharp departure from the recent consensus-based approach. Just last week, when Srinivasan was appointed life trustee, the four trustees led by Mistry had described the move as a “procedural formality”, citing a unanimous decision to give them permanent positions in October last year. Under the trusts’ rules, appointments and dismissals require unanimous consent.
Opposition to Mistry presents two immediate challenges for Noel Tata, who assumed the chairmanship of Tata Trusts on October 11, 2024, less than 48 hours after Ratan Tata’s death. Firstly, Mistry is expected to challenge the decision legally, given that the joint meeting of Sir Ratan Tata Trust and Sir Dorabji Tata Trust on October 17 last year agreed to make all trustees permanent, the administrator said.
Secondly, this divergence raises questions about how the Trusts will now reach consensus. This divide has widened further since September 11, when three trustees – Jhaveri, Khambata and Jehangir – voted along with Mistry to remove Singh as Tata Sons’ representative on the board.
The four had expressed their unhappiness over what they saw as a lack of transparency in Tata Sons’ board decisions, which led to Singh’s dismissal; This move first revealed deep fissures within the supporter group of India’s largest conglomerate. Mint On September 24.
Noel Tata and Srinivasan continue to serve as representatives of Tata Trusts on the board of Tata Sons.
One of Mumbai’s leading lawyers said: Mint Legal recourse last week was within the rights of trustees who cannot be reappointed. Senior High Court advocate H P Ranina said: “Hypothetically, if any trustee cannot be reappointed, it would mean that other Trustees are violating the decisions taken in the board meeting on October 17, 2024. Trustees who cannot be reappointed have the right to take legal action against Tata Trusts.”
Emailed questions to all seven trustees were unanswered at the time of publication.
(This is a developing story.)
