Tata Group's charity arm is currently facing a significant boardroom rift that is deemed unprecedented. A trustee of the charity, Vijay Singh, was not reappointed to the board of the $180 billion business empire controlled by Tata Trusts. This decision has been described as indicative of a "different era" by Singh, marking a shift in the organization's approach. The discord within Tata Trusts, arising a year after the passing of family patriarch Ratan Tata, has raised concerns over a potential repeat of the acrimonious public dispute of 2016 between the charity and Tata Sons, tarnishing the conglomerate's esteemed reputation.
Tata Trusts holds a significant 66% stake in Tata Sons, overseeing a portfolio of 30 firms spanning diverse sectors such as consumer goods, airlines, and renowned brands like Jaguar Land Rover, Tata Consultancy Services, and Tata Motors. Recent disagreements among trustees pertain to board representation at Tata Sons, the strategic direction adopted by the group, and the exit plan for minority shareholder Shapoorji Pallonji. Vice Chairman Vijay Singh, who was not reinstated to the Tata Sons board following a vote by trustees in September, has shed light on internal power struggles within the charity arm, helmed by Noel Tata, Ratan Tata's half-brother.
Singh, breaking the organization's tradition of maintaining a low-profile stance, noted the departure from Ratan Tata's long-standing emphasis on consensus and unanimity in decision-making processes. The decision to exclude Singh from the Tata Sons board was reportedly backed by four trustees, albeit without clear reasons being communicated. Tata Trusts and Tata Sons have refrained from issuing official statements on the matter, despite requests for comments. Meanwhile, two influential Indian ministers have made unusual appeals for Tata Trusts to address its internal disputes constructively.
Insights from a confidential source familiar with Tata Trusts reveal the presence of two opposing factions within the charity arm. The faction led by Chair Noel Tata appears to be at odds with another faction, represented by trustee Mehli Mistry. The nature of the disagreements between these factions remains ambiguous, with allegiances in the ongoing debate unclear. Notably, Mehli Mistry, a relative of the late Cyrus Mistry, the former chairman of Tata Sons who passed away in 2022, represents the family firm Shapoorji Pallonji, which holds an 18% stake in Tata Sons.
