The latest development from the ongoing conflict surrounding Tata Trusts – The Tata Trust board is meeting today to discuss key trust-related matters and healthcare allocation even as the Government steps in to diffuse the escalating internal tension. The meeting holds key significance as differences among trustees have surfaced over board appointments and governance issues.
Here is what we know so far –
1. Government steps in
Tata Trusts Chairman Noel Tata and Tata Sons Chairman N Chandrasekaran met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman on October 7. Vice Chairman Venu Srinivasan and trustee Darius Khambata were also present.
A PTI report indicated that the government is concerned about the infighting’s potential impact on the $180 billion Tata Group, which has interests in nearly 400 companies, including 30 listed firms.
“The primary question in front of the government, considering how significant and important the Tata Group is to the country’s economy, is whether it can let an individual take control of it,” the PTI report highlighted.
2. Tata Trusts split into two factions
Tata Trusts, which control around 66% of Tata Sons, are reportedly split into two groups — one led by chairman Noel Tata and vice chairman Venu Srinivasan, and the other by trustees Mehli Mistry, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata.
3. Division over Vijay Singh’s reappointment sparks rift
The spilt happened at multiple occasion over making a decision. According to PTI, in September 11 meeting to consider the reappointment of former defence secretary Vijay Singh, Singh, who had crossed the age of 75, as a nominee director on the Tata Sons board. After Ratan Tata’s death in October 2024, Tata Trusts adopted a policy requiring annual reappointment of nominee directors once they turn 75.
Noel Tata and Venu Srinivasan supported the reappointment of the 77-year-old, but four trustees — Mehli Mistry, Jhaveri, Jehangir, and Khambata — opposed it. The resolution was rejected, and the four later proposed appointing Mehli Mistry to the Tata Sons board.
Noel Tata and Srinivasan opposed that move, calling for a transparent process consistent with Tata values. Soon after, Vijay Singh voluntarily resigned from the Tata Sons board.
4. Mehli Mistry seeks Tata Sons role
The latest division is seen as the first major challenge to Noel’s leadership, was appointed chairman following his uncle’s passing. According to PTI Mehli Mistry, who has family ties to the Shapoorji Pallonji Group — an 18.37% shareholder in Tata Sons — feels excluded from key decisions.
The Mistry faction is also pushing to nominate Mehli Mistry to the Tata Sons board and reportedly rejected all three candidates proposed by Noel Tata for the Tata Sons board: Behram Vakil, T V Narendran, and Uday Kotak. However, this was opposed by Noel Tata and Srinivasan.The Tata Sons board currently has three recent vacancies due to the retirement of Ralph Speth (ex-JLR chief), the expired term of industrialist Ajay Piramal, and the retirement of ex-UTI chief Leo Puri.
5. RBI yet to decide on Tata Sons’ CIC status
Another major point of contention between Tata Trusts and the Shapoorji Pallonji (SP) Group is the issue of Tata Sons’ listing as an upper-layer Core Investment Company (CIC). The RBI’s deadline for the listing expired on September 30. The SP Group is pushing for the move to enable liquidation of part of its stake. Meanwhile, Tata Sons has applied to the Reserve Bank of India seeking voluntary surrender of its CIC registration and permission to continue as an unregistered CIC. The application is currently under RBI’s review.