Ratan Tata's friend Mehli Mistry resigns as Tata Trusts trustee
What's the story
In a major development, businessman Mehli Mistry has resigned as a trustee of Tata Trusts. The decision was communicated in a letter addressed to all Trustees of the Tata Trusts, including Chairman Noel Tata. Mistry emphasized the importance of keeping the institution away from controversy and preserving its founding values. He also warned that precipitating matters could cause irreparable harm to the reputation of the the Tata Trusts.
Visionary responsibility
'Hope future actions guided by transparency, good governance'
In his letter, Mistry said, "My commitment to Ratan N. Tata's vision includes a responsibility to ensure that the Tata Trusts are not plunged into controversy and that precipitating matters would cause irreparable harm to the reputation of the Tata Trusts." He hoped future actions of other trustees would be guided by principles of transparency, good governance, and public interest.
Tenure details
Mistry's term as trustee ended on October 27
Mistry's term as Trustee ended on October 27 this year. A Board of Trustees resolution dated October 17, 2024 had proposed his reappointment as a lifetime Trustee, but it was not approved by three trustees. Before resigning, Mistry had filed a preemptive caveat with the Maharashtra Charity Commissioner, seeking a hearing before any changes were made to the list of trustees.
Speculation resolved
Mistry's resignation ends speculation about his future
Mistry's letter ends weeks of speculation about his future with Tata Trusts. His resignation comes after a split vote on his reappointment as trustee at the end of his three-year term. Noel, along with TVS Motor Co's chairman emeritus Venu Srinivasan and former defense secretary Vijay Singh, voted against Mistry's reappointment, while three other trustees supported it. The three other trustees—former Citibank India CEO Pramit Jhaveri, Mumbai lawyer Darius Khambata, and philanthropist Jehangir HC Jehangir—supported his reappointment.
Power struggle
Resignation highlights power dynamics within Tata Trusts
The resignation also highlights the power dynamics within Tata Trusts, which hold a majority stake in the holding company of the Tata Group. Noel and Mistry are two major players in these trusts. While Noel has support from Srinivasan and Singh, Mistry is backed by Jhaveri, Khambata, and Jehangir. Their differences became apparent when Mistry voted with his supporters to remove Singh as a trustee's representative on the board of Tata Sons.