Power Shift In Tata Trusts, Noel Tata-Led Faction Ousts Ratan Tata’s Confidant Mehli Mistry Amid Internal Rift

Mumbai: In a major shake-up at the Tata Trusts, Mehli Mistry, a long-time confidant of Ratan Tata, has been removed from the boards of the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. The decision came after three of the six trustees voted against his reappointment. According to reports, Darius Khambata, Pramit Jhaveri, and Jehangir HC Jehangir voted in favour of his continuation, while Noel Tata and two others voted against it.

The vote resulted in a 3–3 tie, which under the Trusts’ rules counts as 'no consensus', meaning the motion fails. As per Tata Trusts regulations, unanimous approval is required for any trustee’s reappointment.

Tata Trusts’ Influence on Tata Sons

The Tata Trusts, including the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, collectively control about 66 percent of Tata Sons, the holding company of the Tata Group — which includes major companies such as TCS, Tata Steel, and Tata Motors. Mistry had been a trustee since 2022, holding significant influence through the trusts that together own 51 percent of Tata Sons and have the authority to nominate one-third of its board members.

Rising Internal Rift Under Noel Tata’s Leadership

The removal marks another chapter in the growing tensions within the Tata Trusts since Noel Tata — Ratan Tata’s half-brother — took over as chairman in October 2024, following Ratan Tata’s passing. His appointment, and later inclusion on the Tata Sons board, was reportedly not unanimous, revealing internal divisions.

The rift widened earlier when the trustees voted to remove former Defence Secretary Vijay Singh from the Tata Sons board, sparking public attention and even prompting government intervention. In early October, senior Tata leaders reportedly met Home Minister Amit Shah to discuss the infighting and its potential impact on the Tata conglomerate.

Legal and Strategic Implications

Mistry, a cousin of late Cyrus Mistry, and part of the Shapoorji Pallonji (SP) family — which holds 18.37 percent in Tata Sons — had recently approved Venu Srinivasan’s reinstatement to the Trust board with conditions. With his removal, the balance of power is expected to tilt toward Noel Tata’s faction. Reports suggest Mistry may challenge the board’s decision in court, although legal experts believe his conditional approval lacks validity.