Tata Trusts votes out aide Mehli Mistry; power tilts toward Noel Tata

Trustees of Tata Trusts have voted to remove Mehli Mistry, a long-time associate of the late Ratan Tata, after months of internal discord at one of India’s most influential philanthropic bodies.

A majority of trustees opposed Mistry’s reappointment, effectively ending his term as trustee on October 28.

Tata Trusts chairman Noel Tata, vice-chairman Venu Srinivasan and trustee Vijay Singh voted against his reappointment, while Darius Khambata, Jehangir HC Jehangir and Pramit Jhaveri supported it.

The outcome of the vote was decided by a majority, as Mistry could not vote on his own reappointment.

Mistry’s removal followed disagreements over governance issues, including the sharing of information between Tata Trusts and Tata Sons. Trustees opposing his reappointment cited “disruptive” conduct and alleged intimidation during meetings.

“These statements are false and motivated,” ET quoted Mistry as saying in an emailed response. He maintained that the Trusts had acted contrary to a 2021 Supreme Court ruling that required Tata Sons to share information with the charitable trust.

While Mistry had remained tight-lipped about his next move, it is likely he will challenge his removal in court.

Noel Tata and Mehli Mistry are two power centres in Tata Trusts, which control a majority stake in the holding company of the Tata Group. The former has the backing of Srinivasan and former defence secretary Vijay Singh, while the other three are with Mistry.

Mistry’s exit could strengthen Noel Tata’s leadership of Tata Trusts, which has been beset by infighting for months.

While trust laws allow for flexibility in internal governance, any challenge to the decision would likely have to be made before the Maharashtra Charity Commissioner or the Bombay High Court.

Mistry, who is also a cousin of the late Tata Sons chairman Cyrus Mistry, is reportedly opposed to the mandatory listing of Tata Sons under new Reserve Bank of India rules, a move that could help reduce debt for the Shapoorji Pallonji Group, which owns an 18% stake in Tata Sons.

The removal marks another break from Tata Trusts’ longstanding tradition of unanimous decision-making.

Earlier in September, trustees voted by majority to remove former defence secretary Vijay Singh as Tata Sons’ nominee director.

Tata Trusts, the umbrella body that controls a 66% stake in Tata Sons, oversees the group’s major philanthropic arms, including the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust.

Mistry himself had given conditional approval for the reappointment of Venu Srinivasan as trustee and vice-chairman of the Sir Dorabji Tata Trust.

His approval, emailed to trustees on October 21, was contingent on all future trustee renewals being approved unanimously.

“For the avoidance of doubt... should any trustee elect not to pass this resolution... then in such event, I do not provide my formal approval for the reappointment of Venu Srinivasan,” Mistry wrote in his email, according to ET.