Forced exit at Tata Sons bares split at Tata Trusts

Vijay Singh’s ouster from Tata Sons follows some trustees feeling lack of transparency

- Varun Sood & Satish John

After eleven months of simmering tensions, differences flared at the Tata Trusts boardroom this month, forcing the exit of a Tata Trusts nominee from the Tata Sons board.

Vijay Singh was removed as a director of Tata Sons at a tense Tata Trusts board meeting on 11 September, said two executives directly aware of the matter, citing the minutes of the meeting. Four out of seven trustees opposed his continuation at the Tata Group investment vehicle, which sits at the head of over 100 companies, forming India’s largest conglomerate.

The voting and ouster of Singh as a representative of Tata Trusts on the Tata Sons board by the Trustees marks a unique development at the philanthropic entities, where decisions are typically made by consensus. Singh, a former defence secretary, continues as a trustee at Tata Trusts.

The four trustees expressed frustration that the Trusts’ three nominees on the Tata Sons board—Noel Tata, Vijay Singh and Venu Srinivasan—had failed to apprise them about several important developments involving Tata Sons, in which the philanthropic entities own a 65.9% stake.

The three-hour Tata Trusts meeting ended with no rapprochement in sight. The seven trustees are now split into two opposing camps—Noel Tata, chair of the Tata Trusts, is in one group, backed by Singh, and TVS Motor Corp. chair emeritus Venu Srinivasan.

In the other camp are former Citibank India chief executive officer (CEO) Pramit Jhaveri, Mumbai-based lawyer Darius Khambata, businessman Mehli Mistry, and Pune-based philanthropist and businessman Jehangir H.C. Jehangir.

Worryingly, Srinivasan’s continuation as the Tata Trusts nominee on the Tata Sons board will be decided next month, the executives cited above said on the condition of anonymity.