Key Takeaways
- Neville Tata and Bhaskar Bhat appointed to SDTT board but blocked from SRTT
- Venu Srinivasan objected to procedural issues in SRTT appointment process
- Power struggle continues weeks after Mehli Mistry’s ouster from Tata Trusts
Noel Tata has secured his son Neville’s position on one major Tata trust but failed to place him on another, revealing ongoing power tensions within the Tata group. The appointments were blocked due to procedural objections from trustee Venu Srinivasan.
Trust Board Appointments and Resistance
Neville Tata and former Tata group leader Bhaskar Bhat were officially appointed to the Sri Dorabji Tata Trust (SDTT), which controls 28% of Tata Sons. However, their appointment to the Sir Ratan Tata Trust (SRTT), holding 23.6% of Tata Sons, was blocked.
Venu Srinivasan, SRTT vice-chairman, objected to how the proposals were introduced. While the appointments were properly agenda items for SDTT, they were brought up under “any other items” in the SRTT meeting without prior discussion.
Srinivasan insisted such significant matters require proper agenda placement and thorough discussion before approval.
Background: Mehli Mistry’s Recent Ouster
The trust drama follows the recent removal of long-time trustee Mehli Mistry, a former Ratan Tata confidant. Mistry comes from the Shapoorji Pallonji family, which owns 18.4% of Tata Sons.
The Mistry family has been involved in a long-standing dispute with Tata since Cyrus Mistry’s removal as Tata Sons chairman in 2016. Despite initially supporting Noel Tata’s chairmanship, Mehli Mistry later opposed certain trust decisions.
In September, Mistry and three other trustees voted to remove Vijay Singh, a Noel ally, as Tata Trusts’ representative on Tata Sons’ board. Last month, Noel Tata, Srinivasan, and Singh retaliated by voting against Mistry’s reappointment after his three-year term ended.
Regulatory Changes Impact Trust Structure
The Maharashtra government’s September amendments to the Maharashtra Public Trusts Act have forced structural changes. The new rules limit lifetime trustees to one-fourth of board strength and mandate fixed terms where trust deeds are silent.
This required revisiting Srinivasan’s October appointment as a lifelong trustee “in compliance with legal and regulatory requirements.”
Tata Trusts collectively control 65.4% of Tata Sons, with other affiliated trusts holding an additional 13.8%, giving them majority control over the 156-year-old conglomerate spanning approximately 400 companies.
