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In a dramatic escalation of internal discord, Tata Trusts has voted to remove Mehli Mistry from its board, marking the end of a contentious tenure for the longtime confidant of the late Ratan Tata. The decision, finalised on Tuesday through a majority vote at two key trusts, underscores a growing schism among trustees that could ripple through the governance of the $150 billion Tata conglomerate.
Mistry, 72, a director at the Meherji Pallonji Group and first cousin to the late Cyrus Mistry, was ousted from the Sir Dorabji Tata Trust (SDTT) and the Sir Ratan Tata Trust (SRTT) - the two entities that together control over 66% of Tata Sons, the group's holding company. The vote against his reappointment as a lifetime trustee was led by Chairman Noel Tata, Vice Chairman Venu Srinivasan, and trustee Vijay Singh, who formed a decisive bloc in both trusts. Supporters of Mistry, including lawyers Darius Khambata and Jehangir H.C. Jehangir, as well as former Citibank India CEO Pramit Jhaveri, were outvoted, with the opposition prevailing despite their consent to his renewal.
The ouster breaks with the trusts' long-standing tradition of unanimous appointments, a norm shattered earlier this year during a September board meeting. Mistry's exit comes just weeks after he publicly voiced frustration over Noel Tata's refusal to back his nomination to the Tata Sons board, a role he saw as essential for amplifying the trusts' influence amid speculation about a potential public listing of the holding company.
Mistry's journey within the Tata ecosystem traces back decades. A childhood acquaintance of Ratan Tata - they met as boys in the same Mumbai apartment complex, he later emerged as a steadfast ally during pivotal moments. In 2016, when Cyrus Mistry, then Tata Sons chairman and Mistry's first cousin, was dramatically removed in a bitter boardroom coup, Mehli Mistry sided with Ratan Tata against his own family ties, whose mothers and grandfathers were siblings. This loyalty earned him key roles: In October 2022, he joined the boards of SDTT and SRTT, ascending to the executive committees that shape the trusts' policies. Following Ratan Tata's death in October 2024, Mistry was named one of four executors of his will, alongside Khambata and Tata's half-sisters Shirin and Deana Jejeebhoy.
His business interests, including logistics, shipping, and industrial services through the Meherji Pallonji Group, have long intersected with Tata entities like Tata Steel and Tata Power. Mistry also serves as a trustee for the Breach Candy Hospital Trust, where the Tata Group recently invested Rs 500 crore in upgrades.
Sparks of the Current Clash
Tensions simmered for months before boiling over. In May 2025, Mistry fired off an email to fellow trustees, objecting to the reappointment of Anita George as an independent director on the Tata Sons board. He argued the move bypassed required trustee consultation, insisting that "the authority to pass any resolution... lies with all the trustees and not with the nominated directors." Sources described this as the first public sign of a "super board" faction-led by Mistry and his allies, attempting to scrutinise Tata Sons' minutes and appointments, a move viewed as a direct challenge to Noel Tata's leadership.
The flashpoint arrived on September 11, during a Tata Trusts board meeting. Mistry's group pushed to oust Vijay Singh as the trusts' nominee on the Tata Sons board, proposing Mistry himself as a replacement to provide a "forceful" advocate for the trusts' interests. Proponents cited the need for robust representation amid Tata Sons' looming listing challenges, which could dilute the trusts' control and expose the group to greater scrutiny. Noel Tata and Srinivasan countered fiercely, lauding Singh's unwavering loyalty during the Cyrus Mistry saga and warning against destabilising precedents.
The majority sided against Singh, prompting his immediate resignation and leaving a vacancy that remains unfilled. Mistry later confided his disappointment to associates, lamenting that Noel Tata had overlooked his own prior support for the chairman's ascension to the trusts and Tata Sons roles.
The trusts now stand vertically divided: Noel Tata's trio - bolstered by Singh's reinstatement as a trustee—against Mistry's quartet, some of whom harbour sympathies for the minority Shapoorji Pallonji shareholder group, still smarting from the 2016 fallout. This rift, exacerbated by post-Ratan Tata transitions, has eroded the consensus-driven ethos enshrined in the trusts' 1932 deeds, which allow majority decisions but rarely invoke them.
A October 17, 2024, resolution post-Ratan Tata's passing pledged lifetime tenures for all trustees in a bid for unity, but it offered no clear renewal process, fueling today's ambiguity. Mistry, who could not vote on his own renewal, is said to be mulling a court challenge, potentially citing the resolution as binding.
For the Tata Group, the implications are profound. With Tata Sons' listing on the horizon - a move that could reshape the empire's structure, these fractures risk projecting instability to investors and regulators. Transparency lapses since late 2024, including unshared board minutes, have already alienated some trustees. Government officials, including top Cabinet ministers, were briefed earlier this month by Tata leaders like Noel Tata and group chief N. Chandrasekaran in a bid to contain the spill-over.
