Mehli Mistry Pushed Out of Tata Trusts Board Amid Trustee Rejection and Boardroom Rift

Mehli Mistry is Out of the Tata Trusts Board after Three Trustees Opposed His Return, Raising Questions about Internal Power Shifts.

In a surprising development, Mehli Mistry has reportedly been removed from the Tata Trusts board after three trustees opposed his reappointment. The decision hints at growing internal tensions within one of India’s most influential philanthropic bodies.

Boardroom Twist

Noel Tata, chairman of Tata Trusts, along with trustees Venu Srinivasan and Vijay Singh, rejected the reappointment of Mehli Mistry as a lifetime trustee. As per the PTI report, this decision deepens the divide at the philanthropic arm that controls the holding company of the Tata Group.

The Trusts, which control a 66 per cent stake in Tata Sons, the holding company of the 156-year-old salt-to-software conglomerate, are now witnessing an unprecedented internal divide.

Meanwhile, Noel Tata was appointed head of Tata Trusts following the death of Tata Group patriarch Ratan Tata last year. 

Tensions between the camps first surfaced in September, when Mistry and his allies voted to remove Singh as Tata Trusts’ representative on the Tata Sons board. However, in a surprising turn last week, Srinivasan was unanimously appointed as a trustee for life, reported the PTI.

Who Voted for Mistry?

Trustees Venu Srinivasan, chairman emeritus of TVS Motor Co., and former defense secretary Vijay Singh voted against the reappointment of Mistry as trustee after his three-year term ended. 

The three other trustees, including former Citibank India CEO Pramit Jhaveri, Mumbai lawyer Darius Khambata, and Pune-based philanthropist Jehangir HC Jehangir, supported Mistry’s return, as per the report.

Mehli Mistry's Next Step

While Mistry has remained silent on his next steps, sources said in the report that he may challenge the decision in court. His challenge is expected to rest on a joint resolution passed on October 17, 2024, just days after Ratan Tata’s death, which stated that all trustees would be made permanent.

At present, the trustees of Sir Ratan Tata Trust (SRTT) include Noel Tata, Venu Srinivasan, Vijay Singh, Jimmy Tata, Jehangir HC Jehangir, Mehli Mistry, and Darius Khambata.

For Sir Dorabji Tata Trust (SDTT), the trustees are Noel Tata, Venu Srinivasan, Vijay Singh, Mehli Mistry, Pramit Jhaveri, and Darius Khambata.

If the vote to remove Mistry stands, he will be removed from the board, affecting the stability of the Tata Group, a corporate powerhouse whose listed entities have an estimated total market capitalization of Rs 25 lakh crore. This vertical split marks a sharp departure from the consensus-driven decision-making that has characterized the Trusts in recent years.