Mumbai: In a dramatic turn that further escalates the internal power struggle at Tata Trusts, a majority of the trusts’ influential trustees have reportedly voted for the ouster of Mehli Mistry. This decision effectively denies the renewal of Mistry’s term, ending his tenure at the charitable bodies that control a majority stake in Tata Sons.
According to a report in The Economic Times, Mistry—once regarded as one of Ratan Tata’s closest confidantes—now faces removal after a key faction of trustees declined to approve his term renewal.
The majority vote was secured by the opposition of three prominent trustees: Chairman Noel Tata, Vice Chairman Venu Srinivasan, and trustee Vijay Singh. With these three votes cast against the renewal, Mistry’s non-renewal constitutes a majority decision within the Sir Dorabji Tata Trust (SDTT).
The Stakes and Board Composition
The significance of this internal tussle cannot be overstated, as the Sir Ratan Tata Trust (SRTT) and the Sir Dorabji Tata Trust (SDTT) together hold 51% in Tata Sons, the holding company of the entire Tata Group.
While trustees Darius Khambata, Pramit Jhaveri, and Jehangir Jehangir reportedly gave their approval for Mistry’s continuation, the three dissenting votes appear to have sealed his fate. The report adds that the non-renewal is also considered a majority decision at SRTT, given that trustee Jimmy Tata does not typically participate in such crucial votes.
The current composition of the boards is:
- SDTT Trustees: Noel Tata, Venu Srinivasan, Vijay Singh, Mehli Mistry, Pramit Jhaveri, and Darius Khambata.
- SRTT Trustees: Noel Tata, Venu Srinivasan, Vijay Singh, Jimmy Tata, Jehangir HC Jehangir, Mehli Mistry, and Darius Khambata.
Deepening Tensions and Conditions
The current vote is the culmination of ongoing tensions and internal disputes that have plagued the Trusts.
Just last week, Mehli Mistry had attempted to set a challenging condition for future renewals, demanding that all trustee renewals must receive unanimous approval from the board. He sent this requirement via email on October 21, stating his own continued service hinged on the application of this strict rule. This stipulation gained particular prominence as Mistry himself was the first to be directly impacted by the renewal process following this proposed change.
The Trusts had previously initiated a policy, following the passing of Ratan Tata, where reappointments are generally for life, provided the trustee’s current term renewal is approved unanimously. This precedent was set in January with the unanimous renewal of Noel Tata’s term for life.
Tensions first flared back in September when a faction including Mistry, Khambata, Jhaveri, and Jehangir voted to remove Vijay Singh as a board nominee for Tata Sons, breaking established practice. This group subsequently proposed Mistry as a board member, but that move was successfully blocked by votes from Noel Tata, Venu Srinivasan, and Vijay Singh.
