MUMBAI: The resignation of trustee Mehli Mistry has handed full control of the influential Tata Trusts to its Chairman, Noel Tata, bringing an end to a period of intense internal discord within the philanthropic parent of the sprawling Tata Group.
Mistry, a long-time associate of former Chairman Ratan Tata and a representative of the Shapoorji Pallonji Group (which holds an 18.5% stake in Tata Sons), stepped down citing a desire to avoid plunging the Trusts into controversy. In his resignation letter, Mistry repeatedly praised Ratan Tata, echoing the patriarch’s quote: “Nobody is bigger than the institution it serves.”
⚔️ The Power Struggle
The rift between the two factions—one led by Mistry and the other by Noel Tata (who succeeded Ratan Tata as Trusts Chairman)—had been escalating. Key points of contention included:
* Tata Sons IPO: Mistry advocated for the listing of Tata Sons on the stock market, a proposal Noel Tata opposed. Tata Sons is the holding company for the entire Tata Group, with 66% of its shares owned by the Tata Trusts.
* Board Appointments: The public fallout began in September over the reappointment of former Defence Secretary Vijay Singh as a nominee director from the Trusts to the Tata Sons board. The Mistry faction opposed Singh’s renewal, citing his age (over 77) and advocating for younger leadership, a move that reportedly angered Noel Tata’s camp.
* Trusteeship Renewal: The Noel Tata faction responded to Mistry’s challenge by bringing a resolution on October 24 to block the renewal of Mistry’s own trusteeship, which had completed a three-year term.
⚖️ Endgame and Central Intervention
Although Mistry initially approached the Maharashtra Charity Commissioner after his reappointment was blocked, his ultimate decision to resign signals a victory for the Noel Tata faction.
Sources suggest Mistry’s withdrawal was also influenced by the perception that the Central Government—with both the Home Minister (Amit Shah) and Finance Minister (Nirmala Sitharaman) having been approached by both sides—was leaning in favour of Noel Tata’s camp, coupled with legal advice suggesting low chances of a successful challenge.
Mistry’s departure is seen as a major consolidation of power for Noel Tata, streamlining decision-making within the Trusts and over the $350 billion Tata Group they effectively control.
