Janak Mathuradas: An investor who turned small shareholder activist in Tata vs Mistry battle

He was in the news when a Gaitonde painting was stolen from his office and made its way to art gallery in New York

As a young man growing up in the 1960s Janak Mathuradas would often go to Bombay House, headquarters of the Tata group, to listen to JRD Tata's speeches on the future of the companies in which his family had small investments. Impressed by JRD’s persuasive skills, Janakbhai, as he is popularly known, has since increased his exposure in Tata companies and has emerged as one of their largest minority shareholders.

But events at Bombay House since Cyrus Mistry was removed as chairman of Tata Sons on October 24 prodded Mathuradas, 66, to move the Bombay High Court.  Mathuradas refused to talk on the petition that will be heard by the court on Friday, but sources say this is not the first time he had taken on managements of blue-chip companies. 

Mathuradas had earlier opposed the merger of Tata Power companies but after the management provided shareholders with more details on the proposal, he supported the move.

He had also opposed Wipro’s proposal to delist its consumer goods company in 2015 and had asked its chairman Azim Premji not to proceed on this course of action. Premji agreed after meeting Mathuradas, who has long-standing relationships with promoters of old Indian business families like the Tatas, the Birlas and the Premjis.

The Mathuradas family migrated from Okha in Gujarat to Mumbai in 1870 to set up a textile business. As the business grew over four generations, the family bought stakes in various blue-chip companies. On advice from JRD Tata, Mathuradas travelled by train to the Tata Steel and Tata Motors plants in Jamshedpur to learn more about the companies. Since then, the family has steadily kept investing in Tata companies.

Sources say Mathuradas wants to remain neutral in the fight between the Tatas and the Mistrys, but the sagging value of Tata group companies after Mistry's exit provoked him to move court. “This was not the Tata group that JRD had envisioned,” says a source.

Apart from the three Tata companies, Mathuradas has also impleaded the Securities and Exchange Board of India, the ministry of corporate affairs and the ministry of law in the petition. The petition urges the court to direct Sebi not to allow Tata Sons not to vote on any resolution seeking removal of independent directors in the three companies as this will set a precedent for non-compliant independent directors to be shown the door.  

The petition says independent directors protect minority shareholders’ interests and Tata Sons is setting a bad precedent apart from lowering corporate governance standards in group companies. The Bombay High Court will also hear tomorrow a similar petition filed by another set of small investors.

Mathuradas was in the news earlier this year when a Rs 50 crore Gaitonde painting was stolen from his office and mysteriously made its way to an art gallery in New York. The case is being investigated by the Mumbai police.