Tata Trusts has been in the news for the wrong reasons over the past few weeks, with reports of growing divisions within one of India’s most influential business and philanthropic bodies.
The latest development comes after a vote within the Trusts reportedly opposed the reappointment of trustee Vijay Singh as a nominee director on the board of Tata Sons, a move that Singh has now described as “unprecedented,” reported The Indian Express.
Vijay Singh, who serves as a trustee and vice-chairman of Tata Trusts, told The Indian Express that the act of voting on internal matters went against the long-standing principles followed during Ratan Tata’s leadership.
“The idea of voting on any matter in Tata Trusts is unprecedented. Ratan Tata was very firm that there should always be consensus and unanimity on issues and perhaps we are now in a different era,” Singh said.
According to the report, a bloc of four trustees, led by businessman Mehli Mistry, voted against Singh’s reappointment to the Tata Sons board. Tata Trusts, which collectively hold around 66% in Tata Sons — the main holding company of the Tata Group — are the largest shareholders in the conglomerate.
Singh, a retired IAS officer and former Defence Secretary, said he did not attend the meeting where the vote took place. “Since I wasn’t there, the question of my voting for or against anyone doesn’t arise. As is common knowledge now, four trustees did vote against my continuance on the Tata Sons board for reasons that were apparently not spelt out,” he said as qeuoted in the report.
Singh joined Tata Trusts in 2018 at the invitation of Ratan Tata after an extensive career in public service. He had earlier served on the Tata Sons board from 2013 until he stepped down in 2018 upon reaching the retirement age of 70.
He was reappointed in 2022 after Ratan Tata relaxed tenure norms for board members. Although Tata Sons’ website still lists Singh as a director, The Indian Express reports that he has resigned following the blocked reappointment.
The disagreement has drawn attention to governance challenges within the Tata Group, which has recently seen its market value fall by an estimated $93 billion across its listed companies, as per the report. Analysts told The Indian Express that the situation has raised questions about internal cohesion and long-term decision-making within the group.
At the heart of the divide are differences over how board appointments should be handled and whether Tata Sons should move towards a public listing. One faction, led by Tata Trusts chairman Noel Tata and supported by trustees Venu Srinivasan and Vijay Singh, is said to prefer continuity and consensus-based decision-making.
The opposing camp, led by Mehli Mistry and including former Citibank India CEO Pramit Jhaveri, Jehangir H.C. Jehangir, and senior counsel Darius Khambata, reportedly wants stronger governance oversight and greater transparency in line with modern corporate practices.
The Indian Express report said the Mistry group had objected to three candidates proposed by Noel Tata for Tata Sons board positions, while Noel Tata and Srinivasan blocked Mistry’s own nomination. Mehli Mistry, notably, is the first cousin of the late Cyrus Mistry, who was ousted as Tata Sons chairman in 2016, a move that led to one of India’s most high-profile corporate disputes.
Another key issue adding to tensions is the debate around the mandatory listing of Tata Sons. The Reserve Bank of India (RBI) has classified Tata Sons as an “upper-layer” non-banking financial company (NBFC) and has directed such entities to list publicly. Tata Sons has requested deregistration, arguing it is not involved in lending activities. The Shapoorji Pallonji (SP) Group, which owns 18.37% in Tata Sons, has been pushing for a listing to unlock liquidity amid its own financial constraints.
When contacted, a Tata Trusts spokesperson told The Indian Express, “At this stage, Tata Trusts does not have any further response to share.”
Experts quoted by the publication cautioned that if the internal rift deepens, it could affect decision-making at the top of the Tata Group. With 29 listed companies under its umbrella, the Tata conglomerate commands a combined market capitalisation exceeding $328 billion, making stability at the Trusts level crucial for investor confidence and group governance.
