Tata Trusts trustees to meet on Friday amid govt push to resolve rift

The trustees of Tata Trusts are set to meet on Friday to discuss allocations for health care even as the government steps in to defuse tensions among key members of the two charitable bodies that control the $150 billion Tata group.

 

The meeting comes after weeks of friction between Trusts Chairman Noel Tata and trustee Mehli Mistry over the withdrawal of former defence secretary Vijay Singh, a nominee of the trusts, from the Tata Sons board last month, people familiar with the matter said.

 

A person close to the development said there was no proposal to withdraw any other nominee of Tata Trusts from the Tata Sons board in Friday’s meeting. 

 

On Tuesday, Union Home Minister Amit Shah and Union Finance Minister Nirmala Sitharaman held talks with both sides, urging them to resolve their differences and ensure the smooth functioning of the group. The meeting was attended by Tata Sons Chairman N Chandrasekaran, senior lawyer Darius Khambata, and Tata Trusts Vice-Chairman Venu Srinivasan, the person said.

 

The outcome of Friday’s meeting will be closely watched, as Tata Trusts, which holds a 66 per cent in Tata Sons, wields significant influence over the conglomerate’s governance and strategy.

 

The trusts’ nominees have effective veto power over the decisions of the holding company’s board.

 

Beyond the dispute on Singh’s exit, the trustees have been split on whether Tata Sons should pursue listing on the bourses to offer an exit route to minority shareholders, led by the Shapoorji Pallonji group.

 

The company’s application to the Reserve Bank of India, seeking reclassification from an “upper-layer” non-banking financial company, remains pending.

 

Tensions emerged over Mistry’s possible inclusion in the Tata Sons board — a move opposed by Tata, Singh, and Srinivasan, but supported by Khambata and trustee Pramit Jhaveri, according to people briefed on the matter. 

The government’s intervention underscores the strategic importance of Tata Trusts in ensuring stability at one of India’s most influential business groups. 

In 2024-25, Tata Trusts received from Tata Sons a dividend income of ₹1,712 crore, which it deployed in charitable and social-impact initiatives.