Tata Trusts At Crossroads Amid Internal Dispute Over Control

Tata Trusts, which holds nearly 66% of Tata Sons, has become the centre of a high-stakes dispute among its trustees. The conflict, rooted in a struggle for control, is drawing attention from both the business community and the government.

Central ministers Amit Shah and Nirmala Sitharaman recently met top representatives of Tata Trusts and Tata Sons to discuss the issue. Sources indicate that unresolved tensions could prompt regulatory intervention. Under the Bombay Public Trusts Act, 1950, the Charity Commissioner may appoint an interim administrator if trustees fail to make timely decisions.

The current disagreement centres on the renewal of Meheli Mistry’s term as trustee. While senior lawyer Darius Khambata, banker Premjit Jhaveri, and Jahangir HC Jahangir support the extension, chairman Noel Tata and trustees Veenu Srinivasan and Vijay Singh have not responded. Mistry insists that if one trustee’s term is extended, all should be, a position opposed by some trustees.

This internal conflict echoes past corporate disputes, such as the decade-old Tata versus Shapoorji Pallonji clash. Mistry’s group recently withdrew a proposal to appoint former defence secretary Vijay Singh to the Tata Sons board. The disagreement has slowed decision-making on key matters, including new appointments, CSR initiatives, and strategic investments.

Despite the tensions, Tata Group companies like TCS, Tata Steel, and Tata Motors remain financially robust. Analysts note, however, that prolonged governance uncertainty could affect investor confidence and public perception. The dispute illustrates a broader clash between the trustees’ desire for control and the organisation’s ethos of service.

Experts also note that, in exceptional cases, the government could intervene through the National Company Law Tribunal (NCLT) under Sections 241–242 of the Companies Act, similar to the Cyrus Mistry case.

As Tata Trusts navigates this crisis, stakeholders are watching closely. The coming weeks will determine whether the group can maintain its ethical legacy or succumb to internal power struggles.

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