MUMBAI: In a dramatic turn of events, Mehli Mistry, who led an unsuccessful coup against Tata Trusts chair Noel Tata after being voted out of two key trusts controlling the Tata Group last week, has reportedly smoked the peace pipe. This comes days after he moved the Maharashtra charity commissioner against his removal, filing a caveat that he be heard before any statements or orders were issued.
Stating that the ongoing escalation in discord between the faction led by Noel and the rival group headed by him could cause irreparable damage to the group, Mistry, a first cousin of Noel’s wife, Aloo, called for restraint and careful handling of internal issues.
In his November 4 letter, Mistry reportedly said it had been his privilege to serve as a trustee of the two key trusts until October 28, adding that he now wished to part ways peacefully and put an end to speculation surrounding his position.
In the letter to Noel, Mistry, who was among the closest friends of the late Ratan Tata and became the owner of some of the late leader’s prized assets, reiterated that it had been his privilege to serve as a trustee.
The development comes amid renewed scrutiny of the governance framework and internal dynamics of the trusts, which own as much as 66.6% of the $180 billion-plus conglomerate.
Sources said that in the larger interest of the trusts and the businesses they indirectly control, holding company Tata Sons must remain a private entity and that listing would be avoided at all costs.
The sources also said trustees Pramit Jhaveri, Darius Khambata, and Jehangir Jehangir, considered close to Mistry, had counselled him to step back.
Differences between the two groups first surfaced in September, when the Mistry camp voted out Vinay Singh as the trust's representative on the board of Tata Sons.
Earlier, the Trusts had unanimously reappointed Venu Srinivasan as a trustee for life.
However, sources added that Mistry, along with Jhaveri, Jehangir, and Khambata, while approving Srinivasan’s reappointment as a nominee director, had also stipulated that all future renewals of trustees be approved unanimously — failing which their approvals would be withdrawn.
One side maintains that any renewal or fresh appointment requires unanimous trustee approval as per laid-down practice, while the other insists that reappointment is automatic and applies to all trustees.
According to the minutes of the joint meeting of key trust trustees on October 17, 2024, it was resolved that on the expiry of a trustee’s tenure, he or she would be reappointed without any limit on the period of tenure. Any trustee voting against would be deemed to be in breach of commitment and therefore “not fit and proper” to serve on Tata Trusts.
The resolution further stated that any such breach would necessitate reopening all resolutions passed by Tata Trusts, including the appointment of Noel Tata as a director on the board of Tata Sons, which formed part of the October 17, 2024, trustees’ resolution.
It also clarified that all trustees are appointed on a long-term and life basis, with trusteeship to be reviewed upon reaching 75 years of age.
Tata Trusts, the umbrella body overseeing several charitable trusts including the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, holds a 66.6% stake in Tata Sons, a 256-year-old holding company comprising around 300 enterprises, including 30 listed entities.
