Noel Tata and Mehli Mistry are two power centres in the Tata Trusts, which control a majority stake in the holding company of the Tata Group.
Rift in the philanthropic arm, Tata Trusts, the philanthropic arm of the Tata Group, has widened as Tata Trusts chairman Noel Tata and two other powerful trustees considered close to him blocked the reappointment of late Ratan Tata’s close associate and businessman Mehli Mistry as trustee, deepening the rift at the philanthropic arm that controls the holding company of Tata Group.
Noel Tata was appointed head of Tata Trusts following the death of Tata Group patriarch Ratan Tata last year.
TVS Motor Co’s chairman emeritus Venu Srinivasan and former defence secretary Vijay Singh voted against Mistry’s reappointment as trustee after the end of his three-year tenure on Tuesday, people familiar with the matter said.
The three other trustees – former Citibank India CEO Pramit Jhaveri, Mumbai lawyer Darius Khambata, and Pune-based philanthropist Jehangir HC Jehangir – who are considered close to Mistry, supported his reappointment, they said.
The unprecedented vertical split marks a sharp departure from the recent consensus-driven approach.
Noel Tata and Mehli Mistry are two power centres in the 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.
Differences between the two groups came to the fore in September, when Mistry and three other trustees – Jhaveri, Khambata and Jehangir – voted to remove Singh as Tata Trusts’ representative on the board of Tata Sons – the holding company of the salt-to-software conglomerate.
However, last week, Srinivasan was made a lifelong trustee in a unanimous decision.
While Mistry had remained tight-lipped about his next move, it is likely he will challenge it in court.
The challenge may be on the ground that a joint meeting of the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust on October 17 last year — within days of the death of Ratan Tata — had agreed to make all trustees permanent.
When contacted, Tata Trusts declined to comment.
With PTI inputs
