Ratan Tata's trusted aide Mehli Mistry to leave Tata Trusts board after Noel Tata, others block reappointment

Out of the six trustees, three opposed the 65-year-old’s renomination through a circular resolution circulated last week, according to a Business Standard report.

The three trustees — Chairman Noel Tata, Venu Srinivasan, chairman of TVS Group, and former defence secretary Vijay Singh — opposed his renewal, the report said, citing people familiar with the matter.

At the Dorabji Tata Trust, Darius Khambata and Prameet Jhaveri voted in favour of Mistry, while at the Ratan Tata Trust, Khambata and Jehangir H Jehangir supported his continuation.

Ratan Tata connection

Mistry was a close aide of Ratan Tata and joined the Tata Trusts in 2022.

His association with Ratan Tata dates back much earlier.

He was also considered among the probable successors for the Trusts’ chairmanship after Ratan Tata but ultimately backed Noel Tata for the top role, according to an Indian Express report.

Mistry is one of the executors of Ratan Tata’s will and inherited the late industrialist’s Alibaug property along with his prized collection of three firearms.

Known for his quiet loyalty, Mistry was among the few who stood firmly by Ratan Tata during a turbulent phase marked by corporate and personal upheavals, especially during the ouster of Cyrus Mistry as Tata Sons chairman.

Those familiar with their relationship describe it as one built on deep trust and mutual respect. His discretion and sound counsel are said to have earned him a place among Ratan Tata’s most trusted confidants.

With the split vote, Mistry is set to exit the boards of both trusts.

Sir Dorabji Tata Trust and Sir Ratan Tata Trust, together, hold a 50 percent stake in Tata Sons.

Tata Sons also holds veto rights and the authority to nominate one-third of the board of Tata Sons.

Cause of the dispute

The rift within Tata Trusts appeared after Mistry, along with his supporters, opposed the reappointment of Vijay Singh as a Tata Sons nominee director.

Relationship with SP Group

According to the report, a cousin of the late Cyrus Mistry, Mehli Mistry is related to the Shapoorji Pallonji (SP) family.

The SP Group has been involved in a long-running corporate dispute with Tata Sons since the 2016 ouster of Cyrus Mistry as Tata Sons chairman.

His relationship remains strained and distant, the report added.

Mistry's business interests

Unlike his well-known cousins from the Shapoorji Pallonji Group, Mehli Mistry opted to stay away from the limelight of the family’s large construction and infrastructure conglomerate, according to the Indian Express report.

Instead, he manages a more modest yet diverse business portfolio under the M Pallonji Group of Companies, which operates across sectors such as painting, dredging, stevedoring, logistics, shipping, finance, investments, life insurance, automobile dealerships, and the production of speciality coatings.

The group’s flagship company, M Pallonji & Co, counts Mistry as one of its directors.

In 2001, MetLife India Insurance Co Pvt Ltd was founded with MetLife, M Pallonji, and The Jammu & Kashmir Bank Ltd as key shareholders. M Pallonji remains an investor and continues to hold a significant stake in the company.

Trustees split over ‘life trusteeship’ clause

Venu Srinivasan reportedly received unanimous backing for his reappointment as trustee. Mehli Mistry too endorsed Srinivasan’s continuation, but with a qualification — that reappointments should be reciprocal and apply equally to all trustees.

According to the report, the Mistry camp argues that renewals are automatic and that a trustee attains ‘life trustee’ status after one term renewal. However, the opposing faction, led by Noel Tata, interprets the rule differently.

Following Ratan Tata’s death last year, the Trusts adopted a resolution stating that every trustee would become a life trustee upon renewal. But lawyers advising the Trusts remain split over how the provision should be read and whether it indeed grants automatic lifetime tenure.