Tata storm blows over?

Behind the latest tussle in the group lies not poor governance, but the dominant shareholder calling the shots, and it is legal

- TT RAM MOHAN

The Tata group has been in the news again for the wrong reasons. A fight has broken out between a Tata family scion, Noel Tata, and a few individuals in positions of authority in the group.

The boards of two important trusts of the Tata family — the Sir Dorabji Tata Trust and Sir Ratan Tata Trust (Tata Trusts) —are said to be riven by differences between a group led by Noel Tata and another group in which Mehli Mistry, a relative of Noel Tata’s, is prominent. Now, we learn that Mehli Mistry, until recently a member of the boards of the Tata Trusts, will not pursue his fight with Mr Tata. Inall likelihood, the storm has blown over.

Mr Mistry had taken comfort in a board resolution passed by Tata Trusts in October 2024 that stated that all board members at the Trusts would be renewed for life when their term came up for renewal. Accordingly, the term of Venu Srinivasan, atrustee and Noel Tata confidant, was renewed in the third week of October.

Alas, when MrMistry’stermcameup for renewal, the Noel Tata faction withheld its consent. Mr Srinivasan staye on but Mr Mistry was out. Mr Mistry subsequently entered a caveat in the matter with the Charities Commissioner. He has since written a letter that suggests he has thrown in the towel.

Many commentators were aghast at the in-fight-ing and fretted about the grave implications for the fortunes of the Tata companies. Had they closely watched the outcome of the earlier battle between Ratan Tata and Cyrus Mistry, then executive chairman of Tata Sons, they need not have worried.

The battle between Ratan Tata and Cyrus Mistry lasted five years but did not come in the way of the performance of the Tata group companies. Likewise, the Tata group performance is still less likely to be disrupted by the present battle between Noel Tata and a few individuals. The battle makes for great drama in the media, though.