Mistry moves trusts regulator

Mehli Mistry has challenged the decision of the Tata Trusts to remove him as a trustee before the Maharashtra Charity Commissioner, and urged the regulatory body to hear his case before approving the decision by the country'slargest philanthropic entities last week.

- Neha Joshi & Varun Sood

On Friday, Mistry filed a caveat against his removal from the Sir Ratan Tata Trust, the Sir Dorabji Tata Trust, and another allied trust, the Bai Hirabai Jamsetji Navsari Charitable Institution, according to an executive privy to the development.

Tata Trusts owns 65.9% of Tata Sons, the holding company of the Tata Group, which has 26 listed companies, valued at over $300 billion.

The Maharashtra Charity Commissioner regulates all appointments and removals of trustees at trusts in the state, and its approval is required before a decision takes effect. A caveat makes it mandatory for the authority to hear Mistry's defence when Tata Trusts sends its decision to remove two of the principal trustees from the board to the Charity Commissioner.

Lengthy case? Unless adjudicated quickly, the development could mark the start of a lengthy legal case, which could hinder decisions made by Tata Trusts-and consequently impact the operations of Tata Sons, the holding company of the Tata Group.

This is because many of the decisions of Tata Sons, including the induction of board members and investments exceeding 100 crore, require approval from the Tata Trusts, as per the articles of association of Tata Sons.

An email sent to Mistry seeking comment went unanswered.