Tata Trust Rift: Mehli Mistry Offers Olive Branch, Approves Venu Srinivasan's Life Trusteeship

Amid a breakout between the two factions of Tata Trusts, two members of the Executive Committee are due for renewal of life trusteeship—Venu Srinivasan and Mehli Mistry. NDTV Profit accessed the resolution dated Oct 17, 2024, which gives life term to the present trustees. This comes as the company’s majority shareholders, Tata Trusts, are locked in an internal conflict over the nomination of a director to the Tata Sons board.

The resolution says, “The Trustees recognise that they are all equally responsible, charged with public duty and specifically tasked by Mr Ratan N Tata. To this end, they resolve that on the expiry of tenure of any Trustee, that Trustee will be reappointed by the concerned Trust without any limit being attached to the period of tenure of such re-appointment, and in accordance with law.”

Sources in the direct knowledge of the developments at Tata Trusts have said that the renewal process for Venu Srinivasan on the Trusts is underway through circulation for approval from the trustees. Sources also suggest that Mehli Mistry and Vijay Singh are some of the first few trustees who have already given their approval for Venu’s trusteeship for life.

Mehli Mistry’s term on Tata Trusts is due for renewal for Oct. 28 this year, speculation is rife that it may be contested due to the backdrop of the in-fighting amongst the two factions of Tata Trusts, nominees on the board of Tata Sons and those who are non-nominees at the Trusts.

A source told NDTV Profit on condition of anonymity that the renewal is not a point of contention as it has been agreed in the resolution of 2024 that this committee gets life trusteeship. ''Mehli Mistry approving Venu’s renewal is a proof of the same," the source told NDTV Profit.

Referring to the Oct. 17 resolution, the principles and objects agreed by the Trustees unanimously and passed by the Trustees stated: “In this moment of transition between the two eras, the Trustees of the SDTT and SRTT Trusts, pass this resolution to iterate and declare the principles and objects by which they will be governed and guided and the goals that they will aspire to accomplish.”

Legal experts suggest that the resolution has to be read in full. It states four key decisions passed unanimously by the trustees.

• All Trustees are appointed on a long-term and life basis, with trusteeship to be revisited upon reaching 75 years of age.

• The Executive Committee, comprising Noel Tata, Mehli Mistry, Venu Srinivasan, and Vijay Singh, will decide all matters relating to Tata Sons’ shareholding and other Trust operational matters.

• No commonality of Chairman between Tata Trusts and Tata Sons.

• Noel Tata to serve both on the Board of Tata Sons and as Chairman of Tata Trusts.

Smooth process of renewal is the test of trust at the Tata Trusts’, a source pointed out, adding that any friction on these renewals may attract action from the Maharashtra Charity Commissioner.

Earlier this month, four senior Tata Group leaders —Noel Tata, Venu Srinivasan, N. Chandrasekaran, and Darius Khambata, briefed Cabinet ministers on the internal discord at Tata Trusts. Two trustees sought government intervention to mediate the rift.

The ministers advised that Tata Trusts should address differences internally to uphold the group’s institutional legacy and stability.

To be clear, the ongoing rift has divided Tata Trusts into two camps. The Noel Tata camp — comprising Noel Tata, Venu Srinivasan, and Vijay Singh (a former nominee director of Tata Sons) — is said to be pushing for continuity and due process before any governance changes are made.

The opposing faction, led by Mehli Mistry, includes Pramit Jhaveri, Jehangir Jehangir, and Darius Khambata. This group had opposed the reappointment of Vijay Singh and pushed for new nominee directors, triggering a 3-versus-4 split among the trustees.