TATA REGAINS TRUST

NOEL TATA REDEFINES FAMILY INFLUENCE, MODERNISING TRUST GOVERNANCE.

- By Nevin John

FOUR POWERFUL MEN—a businessman, a lawyer, a banker, and a philanthropist—against a ‘beginner’ from the Tata clan. All four were staunch Ratan Tata loyalists, and all four wanted to have a say in the functioning of Tata Sons, the group’s holding company. One among them even aspired to secure a seat on the board of Tata Sons as a nominee director representing the Tata Trusts. Their demands surfaced at a time when Noel Tata was trying to piece together the puzzle at the helm of Tata Trusts, in the wake of Ratan Tata’s demise.

On October 28, Noel Tata drew the line firmly. With the support of vice chairman Venu Srinivasan and trustee Vijay Singh, Noel voted against the resolution seeking to extend Mehli Mistry’s tenure as a permanent trustee. Mehli, who had formed a camp along with Darius Khambata (eminent lawyer), Pramit Jhaveri (former Citibank India CEO), and Jehangir HC Jehangir (chairman, Jehangir Hospital, Pune), found himself outnumbered.

A Parsi businessman and cousin of the late Cyrus Mistry, Mehli had earlier supported Ratan Tata in his battle against Cyrus, despite their family connection. All men on the Trusts board were Ratan Tata’s choice, but key differences had emerged following Noel’s entry.

Mehli Mistry’s exit echoes the early turbulence Ratan Tata faced when he succeeded JRD Tata in 1991. Then, too, the new chairman encountered defiance from the heads of Tata companies who had grown accustomed to autonomy under JRD. Ratan Tata systematically consolidated control—beginning with Russi Mody’s removal from Tisco (now Tata Steel) under a new retirement policy, followed by Ajit Kerkar's resignation amid allegations of impropriety, and the quiet exit of Tata Chemicals chief Darbari Seth.