Tata vs Tata: Tata Trusts board meeting concludes amid high tension; Here is the latest update

New Delhi: The Tata Trusts board meeting concluded on October 10 at the group’s headquarters, Bombay House, and lasted until 2 p.m. Some board members were present in person, while others joined via video call. Sources indicate that the meeting likely reviewed the proper functioning of the trust administration, funding information, and compliance with regulations. Reports indicate that the appointment of trustees and the renewal of their terms were not specifically discussed.

How to utilise the money received by Tata Trusts from Tata Sons

The main issue discussed during the meeting is believed to be how to utilise the Rs 1,700 crore (approximately Rs 17 billion) recently received by Tata Trusts as a dividend from Tata Sons for philanthropic purposes. This discussion has led to tensions among the trustees. Efforts are underway to maintain balance and defuse the growing tensions. The government is also monitoring this tension. It is believed that Friday’s board meeting was also a result of a government initiative. At present, information regarding the decisions taken at the board meeting is not available.

Internal disputes; power struggle

The Tata Group, one of India’s most prestigious industrial conglomerates, is currently in the news due to internal disputes. This dispute is related to the ongoing power struggle between the Tata Trusts and Tata Sons. The matter has surfaced just before the first death anniversary of Ratan Tata. At a time when the country’s economy needs stability, the stability of the Tata Group is crucial.

Cause of dispute within Tata Group

The dispute began over appointments to the Tata board and governance policies. According to reports, two factions have emerged within the Tata Trusts. One faction is led by Noel Tata, the stepbrother of the late Ratan Tata. The other is led by Mehli Mistry (cousin of the late Cyrus Mistry). They are associated with the Shapoorji Pallonji family, which holds a significant stake in the Tata Group. Earlier, at the board meeting held on September 11, a proposal was made to re-nominate former Defence Secretary Vijay Singh to the board; however, some trustees rejected it. This was followed by a proposal to nominate Mehli Mistry, but Noel Tata and Venu Srinivasan opposed it, further deepening the controversy.

Why is government monitoring activities of Tata Group?

At one point, the controversy within the Tata Group escalated to such an extent that Home Minister Amit Shah and Finance Minister Nirmala Sitharaman had to intervene. They held a high-level meeting with Noel Tata and Tata Sons Chairman N Chandrasekaran. According to expert Sunil Dave, Tata Trusts own approximately 66% of Tata Sons, giving it control over the group’s holding company. If this dispute escalates further, it will impact not only the stock market and investors but also the Indian economy. The Tata Group has investments worth over Rs 25 lakh crore in listed companies. This group contributes about 4% to India’s GDP.

Influence of Tata Trusts

Tata Trusts wields decisive influence over India’s most valuable conglomerate through its approximately 66 percent stake in Tata Sons, the holding company of the group, which operates businesses ranging from salt to semiconductors. According to sources, Tata Trusts has two stakes. One is associated with Noel Tata, who was appointed chairman of the trust after Ratan Tata’s death. The other group of four trustees is led by Mehli Mistry, who is related to the extended Shapoorji Pallonji family. He holds approximately 18.37 percent of Tata Sons. Mehli reportedly feels he has been kept out of important matters.

Main bone of contention

According to sources, the main bone of contention is the board seats of Tata Sons, which controls the 156-year-old conglomerate, comprising approximately 400 companies, including 30 listed companies. The dispute is expected to be discussed during a meeting of the six trustees of Tata Trusts, a major group representing several charitable trusts, including the Sir Dorabji Tata Trust and the Ratan Tata Trust.

Tata vs Tata

Following Ratan Tata’s death in October 2024, Tata Trusts introduced a policy. Under this, it was made mandatory to decide on the reappointment of nominated directors to the Tata Sons board on an annual basis upon reaching the age of 75. At the September 11 meeting, the proposal to reappoint 77-year-old former Defence Secretary Vijay Singh—who had been a director since 2012 and a trustee since 2018—was made by Trusts Chairman Noel Tata and Venu Srinivasan (Empathy Chairman of the TVS Group). Four other trustees—Mehali Mistry, Pramit Jhaveri, Jehangir H.C. Jehangir, and Darius Khambata—opposed the move, leading to the rejection of the proposal.

Following this, the four trustees demanded that Mehhali Mistry be nominated to the Tata Sons board. However, Noel Tata and Venu Srinivasan opposed this move and stressed the need for a transparent process in accordance with Tata values. Subsequently, Singh voluntarily resigned from the Tata Sons board.

News