Winning Bizness Desk
Mumbai.Mehli Mistry, once a close confidant of Ratan Tata, has been removed from the boards of the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. Out of six trustees, three voted against his reappointment, while three, including Darius Khambata, Pramit Jhaveri, and Jehangir HC Jehangir, supported him. The other three, including Noel Tata, opposed it. According to the rules of the Tata Trusts, any reappointment requires complete consensus among trustees. A 3-3 tie is treated as no consensus, meaning Mistry’s position automatically lapsed.
Trusts control majority in Tata Sons
The Tata Trusts, which include the Sir Ratan Tata Trust and others, collectively control 66 percent of Tata Sons, the holding company of Tata Consultancy Services, Tata Steel, and Tata Motors. Mistry joined both major trusts as a trustee in 2022. These two principal trusts together own 51 percent of Tata Sons and have the right to nominate one-third of its board members, giving them significant influence over the Tata Group’s governance.
Rift deepens after Noel Tata’s rise to leadership
After Ratan Tata’s death, his half-brother Noel Tata became chairman of the Tata Trusts in October 2024. A month later, he was inducted into the Tata Sons board. However, this move was not unanimously supported within the trusts. It caused a clear divide, with one group aligning with Noel Tata and another backing Mehli Mistry. Mistry’s family, the Shapoorji Pallonji Group, holds an 18.37 percent stake in Tata Sons, adding more complexity to the power struggle.
Previous disputes over board reshuffle
A major flashpoint came when the trustees voted to remove former Defence Secretary Vijay Singh from the Tata Sons board. The decision drew national attention and even required government intervention. On October 7, senior leaders of the Tata Group reportedly met Home Minister Amit Shah for a 45-minute meeting. The government urged the group to resolve internal disputes quickly to avoid damage to the company’s reputation.
Conditional approval for Srinivasan’s reinstatement
Recently, Mistry gave conditional consent for Venu Srinivasan’s reinstatement as vice-chairman of the Sir Dorabji Tata Trust. In an email, he stated that unless all trustees receive similar unanimous resolutions at the end of their terms, his approval for Srinivasan would be withdrawn. This triggered a legal debate within the board. Some trustees argued that once a resolution is passed, it cannot be withdrawn, making Mistry’s condition invalid in law.
Mistry’s exit shifts balance of power
Mistry’s removal is expected to change the power dynamics within Tata Sons. With his exit, Noel Tata’s camp is likely to gain more control over board nominations. Analysts believe this may reopen the old rift between the Tata Trusts and the Shapoorji Pallonji Group. Mehli Mistry, a cousin of the late Cyrus Mistry, heads the M Pallonji Group, which is involved in industries such as shipping, dredging, and car dealerships, including Sterling Motors, a Tata Motors dealer. His departure marks another chapter in the long-running tussle within India’s most influential corporate trust.
Key Points in a Nutshell
1. Mehli Mistry removed from Sir Dorabji Tata Trust and Sir Ratan Tata Trust boards.
2. Vote tied 3-3, but rules require full consensus for reappointment.
3. Tata Trusts control 66% stake in Tata Sons, the Tata Group’s holding company.
4. Dispute deepened after Noel Tata became chairman of Tata Trusts in 2024.
5. Board conflict involves factions supporting Noel Tata and Mehli Mistry.
6. Legal debate over Mistry’s conditional approval for Srinivasan’s reinstatement.
7. Mistry’s exit may tilt power towards Noel Tata’s camp.
