After months of discord, Tata Trusts appear to be moving towards reconciliation, with recent reappointments and open exchanges signalling a return to cooperative governance.
After a period of internal strain, the Tata Trusts may finally be heading towards a truce.
A cordial email exchange between trustees Venu Srinivasan and Mehli Mistry -- representing the opposing camps -- on October 21 hinted at a renewed spirit of collaboration within India's most influential philanthropic body, according to The Hindu BusinessLine newspaper.
Srinivasan, who was recently reappointed to the board, wrote to his fellow trustees thanking them for their confidence and expressing hope for 'harmonious' cooperation.
Mistry, representing the group that had earlier raised concerns, promptly replied: 'It has always been our intention to work harmoniously together... We must bury the past, respect each other and move forward as a team unanimously.'
The e-mail trail, as reported by The Hindu BusinessLine on Thursday morning, appears to capture a moment of thaw in a long-running standoff that had divided trustees into two broad camps.
Information Gaps at the Heart of the Rift
The source of tension, according to The Hindu BusinessLine, was not a matter of personal rivalry but of transparency.
Four trustees -- Mehli Mistry, Darius Khambatta, Jehangir HC Jehangir and Pramit Jhaveri -- had objected to former defence secretary Vijay Singh's reappointment to the board of Tata Sons Pvt Ltd (TSPL), citing a lack of information flow from the Trusts' nominees on the company's board.
The dissenting group argued that key board resolutions at TSPL, including the 3.8 billion Euro acquisition of Italian vehicle manufacturer Iveco by Tata Motors and a Rs 1,000 crore funding approval for Tata International Ltd, were not communicated to the Trusts' board as required under Article 121A of TSPL's Articles of Association.
This provision, introduced in 2014, requires certain key actions of the TSPL board to be approved by a majority of the Trusts' nominees. The breakdown of this process, they claimed, eroded trust between the two factions.
Amid Allegations, a Surprising Turn
According to The Hindu BusinessLine, the dispute also raised concerns about potential conflicts of interest. Noel Tata, Chairman of Tata International, Trent, Tata Investment Corporation and Voltas, was among those accused of overlapping roles, given that he also represents the Trusts on the TSPL board.
Supporters of Noel Tata, however, rejected the charge, arguing that not every high-value proposal required approval by the wider board of trustees. They countered that Mehli Mistry himself could face questions over his business dealings with Tata Power while serving as a trustee -- an allegation Mistry's camp denied.
Ironically, The Hindu BusinessLine reports, Mistry was among those who had once proposed Noel Tata for the position of chairman of the Trusts -- a post created to succeed Ratan Tata.
Despite the internal turbulence, Mistry's faction insists their issue lies not with individuals but with the 'lack of transparency' in decision-making.
Consensus on Key Decisions
One area of unity, according to The Hindu BusinessLine, has been the trustees' unanimous opposition to any initial public offering (IPO) of Tata Sons Pvt Ltd. Both groups agree that listing the company would not serve the long-term interests of either the group or the Trusts.
'Why should we bail out the SP Group now?' one trustee was quoted as saying, referring to the financially stressed Shapoorji Pallonji Group.
Trustees argue that TSPL's private status allows it to pursue strategic national interests -- from semiconductors to defence manufacturing -- without pressure for short-term returns from public shareholders.
The two sides also expressed strong support for N Chandrasekaran, chairman of Tata Sons, praising his leadership and strategic expansion into emerging sectors. As The Hindu BusinessLine highlighted, group profits have surged from about Rs 850 crore (Rs 8.5 billion) when Chandra -- as he is known within the group -- took over to roughly Rs 27,000 crore (Rs 270 billion) now.
A Cautious Path to Peace
Recent developments -- including Srinivasan's reappointment and an expected similar move for Mistry -- suggest a gradual rebuilding of trust.
The meeting of senior Tata leaders, including Chandrasekaran, Noel Tata, Venu Srinivasan and Darius Khambatta, with Union Ministers Amit A Shah and Nirmala Sitharaman, was arranged by Chandra himself, according to The Hindu BusinessLine.
While differences over transparency and governance remain, both factions seem aware that prolonged conflict could damage the Trusts' philanthropic mission. 'The last thing they need is a legal battle,' The Hindu BusinessLine quoted a person close to the Trusts as saying.
For now, the exchange of polite emails and shared resolutions offers a glimmer of rapprochement -- a reminder that even in one of India's oldest corporate legacies, dialogue remains the first step towards unity.
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